NEW DELHI: Embassy Office Parks, India’s first listed real estate investment trust (REIT), said on Monday that its rental collections for the first quarter of fiscal year 2020-21 (FY21) from office occupiers remained robust despite the pandemic. According to the REIT, it received 97 per cent of its rental collections in this segment even though severe lockdowns had been imposed to contain the spread of Covid-19.
“Rental collections for 1Q FY2021 from office occupiers remained robust at 97 per cent, with office rental collections at 98 per cent for April 2020, 98 per cent for May 2020 and 95 per cent for June 2020 (as of July 18, 2020),” it said in a statement on Monday.
Embassy also witnessed a rental increase of 14 per cent on 1.8 million square feet across 22 office leases.
Mike Holland, CEO of Embassy REIT said that the trust continued to support its “occupiers on their immediate focus of business continuity and employee safety”
“We are well prepared to meet the anticipated increased demand for institutional grade office space over the coming quarters given de-densification and increasing global demand for sophisticated technology solutions,” he added.
While office space, which contributes to 92 per cent of overall revenue for the Bengaluru-headquartered company, remained steady in the quarter ended June 30, the hospitality segment, which contributes about 5 per cent of its revenue, took a sharp hit due to sustained travel restrictions across the world.
Commenting on its liquidity position, the firm said that it stands strong with existing cash and undrawn committed facilities totaling Rs 1,260 crore as of June 30, 2020.