REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make investments in this platform and earn income.
In September last year, Embassy Office Parks had filed the draft red herring prospectus (DRHP) with markets
regulator SEBI to launch REIT, touted as Asia's largest in terms of portfolio size of 33 million sq ft. The area comprises seven business parks and four city-centric buildings spread across Mumbai, Bengaluru, Pune, and Noida.
The company’s high-quality tenant base along with long-term contracted rentals (with a weighted average lease expiry of 7.0 years) provides considerable stability to its portfolio, said analysts at HDFC Securities.
While its portfolio is highly stabilised at 95 per cent committed occupancy, it is well positioned to achieve further organic growth through a combination of contractual rent escalations, re-leasing at market rents, lease-up of vacant space and new construction to accommodate tenant expansion, the brokerage added
"We believe the yield has upside potential on account of rental escalation and expansion in asset portfolio following a comfortable leverage position," said ICICI Direct.