ICICI Securities is bullish on Embassy Office Parks REIT recommended buy rating on the stock with a target price of Rs 390 in its research report dated July 27, 2023.

Buy Embassy Office Parks REIT; target of Rs 390: ICICI Securities

Embassy Office Parks REIT posted 9% YoY rise in net operating income to ₹738 crore in June quarter. 1.1 msf leased out across 22 deals, 37% of new leases at 68% spread. 450 sq ft pre-leased at premium to market rents. Distribution guided at ₹20.50-22 per unit for FY24. India attractive to global MNC…

GCCs, large occupiers back in the market looking for office space

Embassy REIT looks to increase leasing space to 6M sq ft in FY24, driven by improved conditions in Bengaluru & stable interest rates. Q1FY24 saw 1.1M sq ft leased, incl. 0.4M new leasing, 0.45M pre-leasing & 0.25M renewals. Cost of debt expected to be 7.9%, ₹4,100 cr refinancing at 8%. Focus to incr…

Embassy REIT targets 20% y-o-y increase in leasing for FY24

Embassy REIT reported a robust trend of expansionary demand, with existing occupiers contributing to over 80% of the new/pre-leasing, and Global Captive Centres (GCCs) from various sectors accounting for 71% of the total.

Embassy Office Parks REIT expects to lease 6 million sq ft of office space in FY24

Currently, there are only four listed REIT entities in India. Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India REIT are office space-backed REITs, While Nexus Select Trust is the first mall and retail-asset-backed REIT in India.

REIT firms plan to form an association

Embassy Office Parks REIT has raised ₹1,050 crore through an NCD issue. Embassy REIT will use the proceeds from this debt raise to refinance bank loans, which are due for an interest reset in the coming months.

Embassy Office Parks REIT raises ₹1,050 crore through NCD issue

Embassy Office Parks REIT expects to secure interest savings of approximately 138 basis points

Embassy REIT raises Rs 1,050 crore through NCDs to refinance bank loans

Private equity firm Blackstone has put its plans to offload stake in Embassy Office Parks REIT on the backburner and wait for a better exit pricing.

Blackstone puts Embassy REIT exit on the backburner for now

Embassy REIT inked 100 deals in FY23, one of the highest in seven-odd years, and achieved 51 lakh sq ft of space leasing

Momentum build-up seen in small, mid-size office leasing, large deals from H2FY24 onwards, says Embassy REIT CEO

Embassy REIT, sponsored by Blackstone and realty firm Embassy Group, is India’s first publicly listed Real Estate Investment Trust (REIT).

Embassy REIT CEO Vikaash Khdloya Resigns; Aravind Maiya To Become New CEO From July 1

Embassy Office Parks REIT has named Aravind Maiya as its new CEO, effective from July 1, 2023. Maiya previously served as the CFO of the real estate investment trust (REIT), where he played a vital role in its growth since listing. The announcement comes as Vikaash Khdloya, the current CEO, steps do…

Embassy REIT appoints Aravind Maiya as CEO, reports Q4 results

Hasn't fared well - amongst the low performers

Performance

Seems to be overvalued vs the market average

Valuation

Lagging behind the market in financials growth

Growth

Showing good signs of profitability & efficiency

Profitability

Fundamentals

Good time to consider, stock is not in the overbought zone

Technicals

Entry point

Promoter pledged holding

Unsolicited messages

Default probability

Red flags

Embassy Office Parks REIT owns and operates office buildings. Their portfolio comprises seven office parks and four prime city-center office buildings.

Embassy Office Parks REIT