Embassy Office Parks REIT: Embassy Office Parks REIT leased 3.1 million square feet in the first half of fiscal year 24, and the prognosis for the entire year looks bright, boosted by a record leasing backlog of 2.5 million square feet, the business stated in October.
Embassy Office Parks REIT, a real estate investment trust, will be in the spotlight on Wednesday morning following a media allegation that private equity firm Blackstone was aiming to sell its whole 23.5 percent ownership in the REIT in a block deal today. According to reports, the block deal’s floor price is Rs 310, and the transaction’s value is projected to be $833 million.
According to its website, Embassy REIT owns and manages a 45.3 million-square-foot portfolio of nine infrastructure-like office parks and four city center office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region. According to the company’s website, Embassy REIT’s portfolio includes 35.3 million square feet of completed operating space and is home to 240 businesses.
Also Read: Will Media And Telecom Firms Have Good News In 2024? That Is Improbable
According to Embassy REIT, the property includes strategic assets such as four operational business hotels, two underconstruction hotels, and a 100 MW solar park that provides renewable energy to tenants. Embassy Office Parks REIT leased 3.1 million square feet in the first half of fiscal year 24, and the prognosis for the entire year looks bright, boosted by a record leasing backlog of 2.5 million square feet, the business stated in October.
Embassy Office Parks REIT inked seven additional acquisitions totaling over a million square feet. The REIT stated in its Q2 results announcement that there was substantial demand from Global Captive Centres (GCCs), which accounted for 70% of overall leasing activity. According to the report, Bangalore and Mumbai dominated the demand, accounting for 90% of total leasing in the September quarter. Occupancy rates stood at 90% across 50% of its properties, with Embassy 247 in Mumbai remaining fully filled.
The REIT recorded Rs 889 crore in revenue from operations during the quarter, a 4% increase. The REIT distributed Rs 524 crore, or Rs 5.53 per unit, marking the 18th straight quarter of a 100% dividend. During the quarter, the REIT achieved the lowest 121 basis point spread over G-Sec and secured first-time participation from pension funds in the Rs 1,000 crore NCD issuance. Embassy REIT stated that it had a strong balance sheet with the industry’s lowest average cost of debt at 7.4 percent and dual AAA/Stable credit ratings.
Frequently asked questions
Is it good to invest in Embassy REIT?
Embassy Office Parks REIT has returned -3.49% this year and -1.79% over the last five days. Embassy Office Parks REIT has received coverage from 14 analysts. There are 8 analysts who rate it as a strong buy, and 6 analysts who rate it as a buy. The stock has a sell rating from 0 analysts.
What does Embassy REIT do?
Embassy REIT owns and runs a 45.3 million square foot (“msf”) portfolio of nine infrastructure-like office parks and four citycenter office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region (“NCR”) of India.
Who is the founder of Embassy REIT?
Jitendra Virwani is the Chairman and CEO of the Embassy Group of Companies, which includes the Embassy Sponsor. He is also the Embassy Sponsor’s founder.
Who are the major shareholders of Embassy REIT?
According to our data, Blackstone Inc. is the largest stakeholder, holding 16% of all outstanding shares. Capital Research and Management Company and Embassy Property Developments Private Limited are the second and third largest shareholders, with 14% and 12% of the shares outstanding, respectively.
Click here, to check out the latest post on Instagram.
Also read: BT500 Wealth Creators Summit: What Is Driving India’s Improved Corporate Governance Practices?
image source: google
