Embassy REIT- Stable performance
时间:2024-06-26 13:10:37 阅读(143)
The Embassy Office Parks REIT (Embassy REIT) delivered a resilient Q3FY23 performance with same-store office portfolio occupancy levels remaining flattish q-o-q at 88% and net operating income (NOI) remaining flat q-o-q at `700 crore. The REIT manager had given guidance for 5.0msf of leasing in FY23 vs. 2.2msf in FY22 and has achieved 9MFY23 leasing of 4.4msf. While headwinds owing to delay in introduction of DESH Bill (vacant SEZ spaces) and slowdown in large deals owing to global macro conditions are near-term demand dampeners, the REIT manager remains confident of delivering double digit NOI growth in FY24E and beyond. The NOI growth is expected to be driven by lease-up of vacant space (1.3msf of conversion from SEZ to non-SEZ), completions of 6.6msf of new area over FY23-27E and markup of expiring leases. We retain our BUY rating with a revised Mar’23 NAV based target price of `425/unit accounting for asset and balance sheet adjustments, higher WACC and capex. While we retain our FY23 distribution/unit (DPU) estimate of `21.6/ unit, we reduce our FY24 and FY25 DPU estimates by 5% and 7% respectively to `23.0/unit and `24.5/unit, respectively. Key risks are slow recovery in leasing and higher vacancy levels.
The REIT saw overall same-store portfolio occupancy remaining flattish q-o-q at 88% with Q3FY23 NOI of `700 crore. For Q3FY23, the REIT manager declared an NDCF(net distributable cash flow) of `500 crore and with 9MFY23 DPU of `16.1/unit, the REIT manager is on track to achieve its FY23 DPU guidance of `20.6-22.8/unit vs. Isec estimate of `21.6/unit.
The REIT currently has 6.6msf of development pipeline mainly across Manyata and Tech Village Bengaluru assets expected to be completed over FY23-27E at a total cost of `30bn (`2,100 crore pending capex as of Dec’22) and may deliver incremental NOI of `800 crore. These new assets along with MTM (market-to-market) on existing leases, may drive long term growth.
猜你喜欢
- FII DII data- FPI sold shares worth Rs 2950
- Crude oil falls as economic fears weigh against potential crude draw
- FII, DII data- FPIs sold shares worth Rs 79 Cr, DIIs sold shares worth Rs 1372 Cr on December 6, Wednesday
- Gold Price Today, 9 January- Prices rise as dollar tumbles; expectations of less-hawkish Fed fuel gold rally
- FII, DII data- FPIs sold shares worth Rs 4326 Cr, DIIs added shares worth Rs 3569 Cr on October 25, Wednesday
- Gold to remain volatile next week amid US CPI inflation, Fed meet outcome; book profit before important data
- Gold Price Today, 3 July- Gold inches lower; traders eye FOMC meeting minutes, US Fed rate hike verdict
- Crude oil price climbs on expected drop in Russian exports, offsets US storm impact
- Gold support placed at Rs 59600, resistance at Rs 60500; All eyes on FOMC meeting amid debt crisis