Embassy Office Parks REIT Q2 Earnings Review
BQ Prime’s special research section brings together in-depth and quality research reports on stocks and the economy from India’s top brokers, asset managers and research agencies. These reports offer BQ Prime subscribers the opportunity to broaden their understanding of companies, sectors and the economy.
Real estate investment fund Embassy Office Parks delivered resilient performance in the second quarter of FY23, with office portfolio occupancy levels remaining stable at 87% and net operating income increasing 4% year-on-year quarterly to reach 7.0 billion rupees.
The Embassy REIT manager had given guidance for 5.0 million square feet of lease in FY23 versus 2.2 million square feet in FY22 (including 1.2 million square feet of pre-commitments and 1.7 million square feet of vacant space rental).
In the first half of FY23, the REIT’s manager completed a total of 3.4 msf of leases (1.3 msf of renewals, 1.1 msf of pre-commitments and 1.0 msf of rental of vacant space ).
The REIT expects to realize new leases of 0.7 msf in H2 FY23 against 0.1 msf of expected exits, implying a slight increase in portfolio occupancy in H2 FY23 of 0.6 msf.
The REIT manager maintains its distribution forecast per unit for the past financial year 23 days of Rs 20.6 to 22.8/unit (midpoint of Rs 21.7) compared to our estimate of Rs 21.6/unit .
Click on the attachment to read the full report:
This report is written by an external party. BQ Prime does not guarantee the accuracy of its content and is in no way responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert based on your individual needs. The opinions expressed in the report are those of the authoring entity and do not represent the opinions of BQ Prime.
Users have no license to copy, modify or distribute the content without the permission of the original owner.