Corporate News
Embassy Office Parks REIT reported a 15% year-over-year revenue increase, partially offset by a 10% area increase due to lease exits, and anticipates a stronger second half as those impacts subside. The company’s overall occupancy stands at 90% by area, with approximately 1 million square feet remaining to be leased at the Embassy Business Hub, awaiting metro completion to drive rate increases currently ranging from Rs 75 to Rs 90 per square foot. A one-time fee related to a Four Seasons management contract resulted in a negative distribution per unit this quarter, though excluding this fee, performance remains consistent. Management expects a cash tax rate of around 5% of revenue for the next 1-2 years and anticipates refinancing Rs 4,000 crores of debt annually, potentially increasing interest costs by approximately Rs 8 crores per annum for each 25 basis point rate hike.