Embassy Office Parks REIT upgrades leasing guidance to 6.5 mn sq ft of office space in FY24
Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, upgraded its leasing guidance to 6.5 mn sqft of office space in FY24, despite global financial turmoil and corporates reassessing their real estate portfolio.
“We have successfully leased 3.1 mn sq ft, and the outlook for the full year looks promising, bolstered by a record leasing pipeline of 2.5 msf. We are also very pleased to further strengthen our long-standing partnership with one of our largest clients at Embassy GolfLinks.
This coupled with the strong leasing momentum in the business, has resulted in a revised leasing guidance of 6.5 msf for FY2024 from the earlier announced 6 msf,” said Aravind Maiya, Chief Executive Officer of Embassy REIT.
Embassy REIT reported a robust trend of expansionary demand with Global Captive Centres (GCCs) from various sectors accounting for 70% of the total demand.
In the second quarter of FY24, Embassy REIT achieved a net operating income (NOI) of Rs 719 crores, marking a 2% increase compared to the corresponding period in the previous year.
Additionally, the revenue for the same quarter reached Rs 889 crore, reflecting 4% growth compared to the previous year.
The firm has reported over 90% occupancy levels across 50% of the REIT’s properties with Embassy 247 in Mumbai registering 100% occupied.The average occupancy across properties stood at 85%.
“We have delivered one mn sq ft of new office tower in Bengaluru and have 7.1 mn sq ft of total development portfolio of which 90% is in Bengaluru, expected to yield around 20% return on cost spends,” said Maiya.
Embassy Reit, achieved lowest 121 bps spread over G-Sec and secured first-time participation from pension funds in the Rs
