Embassy Office Parks REIT Sees No Significant Impact of Omicron on Rentals, Office Space Absorbs

Embassy Office Parks REIT, Asia’s largest office property investment trust by area, sees no significant impact from Omicron cases or the rise in Covid, either on rentals or absorption (of offices) .

In fact, the company – India’s top listed REIT – says it is “on track” with its FY22 third quarter (October – December) guidance on operating income and dividends. . The company previously announced a 500,000 square foot lease pipeline in the second quarter earnings call. During the July-September period, it had rented 713,000 square feet of space.

According to Vikash Khdloya, Deputy Managing Director and COO, Embassy REIT, there could be “some short-term delays” in signings, while the “overall deal pipeline remains strong.”

Khdloya said Activity area, The demand for Class A office supplies, a larger space with better seating arrangements, and increased attention to well-being and safety only increased after the pandemic. Offices are increasingly aware of these provisions when entering into new leases.

Rentals also remained strong with a collection rate of almost 99%, indicating no significant impact.

“We remain very positive about the industry and the growing demand for high quality office space by technology and global captives that will benefit institutional owners like Embassy REIT,” he said.

Embassy Office Parks REIT saw its operating profit increase 30 percent, year-over-year, for T2FY22 to 624 crore. It declared distributions (interest, dividends and depreciation of the special purpose vehicle) of 537 crore, or 5.66 per unit for the quarter ending September 2021.


According to Khdloya, the company also plans to expand beyond its main markets – Bengaluru, NCR – Noida, Pune and Mumbai. Bengaluru alone accounts for over 70 percent of its total area under management. Chennai and Hyderabad, the other two growing markets, in addition to the cities where Embassy REIT already has a presence, are the new cities where it is considering additions.

Besides its own development, it would also explore acquisitions – institutional and category A business parks being a favorable option.

“Large-scale development with world-class facilities leased to global occupants is something we would consider for expansion,” he said, adding that the company may explore fundraising options. through an optimal combination of debt and equity. It can access both the debt and equity markets to raise capital.