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Embassy REIT Ups Office Space Leasing Guidance
Real Estate

Embassy REIT Ups Office Space Leasing Guidance

Embassy Office Parks REIT, Asia's largest office REIT by area and India's first listed REIT, has raised its leasing guidance to 6.5 million square feet (msf) of office space for FY24. This optimistic outlook comes despite ongoing global financial turmoil and corporations reevaluating their real estate portfolios.

Aravind Maiya, CEO of Embassy REIT, stated, "We have already successfully leased 3.1 msf, and the full-year outlook is promising, supported by a robust leasing pipeline of 2.5 msf. We are also delighted to strengthen our longstanding partnership with one of our major clients at Embassy GolfLinks. This, combined with the strong leasing momentum, has led to the revised leasing guidance of 6.5 msf for FY2024, up from the earlier 6 msf target."

Embassy REIT has observed a notable trend of expanding demand, particularly from Global Captive Centres (GCCs) representing 70% of the total demand.

In the second quarter of FY24, Embassy REIT achieved a net operating income (NOI) of Rs 7.19 billion, a 2% increase compared to the same period in the previous year. Additionally, the revenue for the same quarter reached Rs 8.89 billion, marking a 4% growth compared to the previous year.

The REIT currently maintains over 90% occupancy levels across 50% of its properties, with Embassy 247 in Mumbai reaching full occupancy at 100%. The average occupancy across their properties stands at 85%.

Aravind Maiya also mentioned their recent achievement of delivering one million square feet of a new office tower in Bengaluru, contributing to their total development portfolio of 7.1 msf, of which 90% is located in Bengaluru, and it's anticipated to yield around a 20% return on cost spends.

Notably, Embassy REIT secured participation from pension funds in their new NCD issuance, amounting to Rs 10 billion, and they achieved the industry's lowest average cost of debt at 7.4%. The board of directors of Embassy Office Parks Management Services, the manager of Embassy REIT, declared a distribution of Rs 5.24 billion or Rs 5.53 per unit for Q2 FY2024. The record date for this distribution is November 3, 2023, with the distribution to be paid on or before November 10, 2023.

Embassy Office Parks REIT, Asia's largest office REIT by area and India's first listed REIT, has raised its leasing guidance to 6.5 million square feet (msf) of office space for FY24. This optimistic outlook comes despite ongoing global financial turmoil and corporations reevaluating their real estate portfolios. Aravind Maiya, CEO of Embassy REIT, stated, We have already successfully leased 3.1 msf, and the full-year outlook is promising, supported by a robust leasing pipeline of 2.5 msf. We are also delighted to strengthen our longstanding partnership with one of our major clients at Embassy GolfLinks. This, combined with the strong leasing momentum, has led to the revised leasing guidance of 6.5 msf for FY2024, up from the earlier 6 msf target. Embassy REIT has observed a notable trend of expanding demand, particularly from Global Captive Centres (GCCs) representing 70% of the total demand. In the second quarter of FY24, Embassy REIT achieved a net operating income (NOI) of Rs 7.19 billion, a 2% increase compared to the same period in the previous year. Additionally, the revenue for the same quarter reached Rs 8.89 billion, marking a 4% growth compared to the previous year. The REIT currently maintains over 90% occupancy levels across 50% of its properties, with Embassy 247 in Mumbai reaching full occupancy at 100%. The average occupancy across their properties stands at 85%. Aravind Maiya also mentioned their recent achievement of delivering one million square feet of a new office tower in Bengaluru, contributing to their total development portfolio of 7.1 msf, of which 90% is located in Bengaluru, and it's anticipated to yield around a 20% return on cost spends. Notably, Embassy REIT secured participation from pension funds in their new NCD issuance, amounting to Rs 10 billion, and they achieved the industry's lowest average cost of debt at 7.4%. The board of directors of Embassy Office Parks Management Services, the manager of Embassy REIT, declared a distribution of Rs 5.24 billion or Rs 5.53 per unit for Q2 FY2024. The record date for this distribution is November 3, 2023, with the distribution to be paid on or before November 10, 2023.

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