India’s Maiden REIT Beats Realty Stocks
India's only listed real estate investment trust has outperformed the stocks from the sector even as the developers grapple with a liquidity crunch in a slowing economy. Thanks to a steady flow of money since its inception 15 months back, Embassy Office Parks REIT has delivered 14 per cent return against 20 per cent negative returns generated by BSE Realty Index over the same period. Currently, Embassy Office Parks REITs is the only publicly-traded REIT in India and its market capitalization stood at $3.5 billion on July 3, 2020 --17 per cent of the total market-cap of all listed real estate stocks. On a year-to-date basis, Embassy Office Parks REIT is down 20 per cent, while BSE Realty Index is lower by 29 per cent. Sunteck Realty is the biggest loser, down 55 per cent. None of the index constituents is in the green on a year-to-date basis. The Embassy REIT has a portfolio size of 33 million square feet with occupancy rate of 92.8 per cent,. It has seven properties spread across Bangalore, Mumbai, Delhi-NCR and Pune. More such REITs are in the pipeline. “We are witnessing consolidation of portfolios and good quality office assets are changing hands. Several developers and owners of commercial office real estate are at various stages of preparing to list their REITs,” said Shobhit Agarwal, MD & CEO of Anarock Capital.
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