Home / Companies / News /  Embassy Reit doubles leasing guidance for 2022-23

BENGALURU : Embassy Office Parks REIT, the first listed real estate investment trust, has doubled its leasing guidance to 5 million sq ft for 2022-23, as new leases are expected to gain momentum and more companies bring back employees to offices.

In 2021-22, the company signed 2.2 million sq ft of lease deals, including fresh leases and lease renewals, across 47 deals.
Embassy REIT on Thursday reported a 23% jump in net operating income in 2021-22, to 2491crore, compared to the preceding financial year. It clocked a 26% rise in revenue to 2962 crore in FY2022, compared to 2360 crore in FY2021, the company said.
“Despite losing 5-6 months to covid during the year, we managed to clock good leasing and our leasing outlook for 2022-23 is very positive. Demand is rebounding strongly, with Bengaluru and Mumbai showing high levels of demand for office space at the moment. Employees are coming back in increasing numbers every week, and we had 54,000 people in our office parks on Wednesday this week," Mike Holland, CEO, Embassy REIT said in an interview.
On Thursday, the company also said that Holland is stepping down as CEO of the manager to Embassy REIT, and will be replaced by Vikaash Khdloya, who is currently deputy CEO and chief operating officer. Holland played an important role in launching India’s first REIT. Khdloya will assume his role as CEO from 1 July.

“…We delivered on our business and our enhanced financial guidance and are set on a clear growth path for the future. The office leasing momentum continues to grow backed by very encouraging return to workplace trajectory, coupled with robust hiring by technology and global captive players and record tech investments," Holland said.

The cumulative distribution for FY2022 totals 2063 crore or 21.76 per unit, which is 1% higher than the initial guidance issued earlier by the management. The record date for the Q4 FY2022 distribution is 9 May 2022 and the distribution will be paid on or before 13 May. “Demand for high-quality office parks and technology sector expertise in India continues to grow, providing significant tailwinds for Embassy REIT. I am excited and honoured to lead the REIT through this next growth phase after working with the management team and sponsors for more than a decade.," said Khdloya. 

 

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