The prices of Embassy REIT may be have declined mainly due to selling of Units by Promoter group Blackstone entities. Further, increase in interest may also impact adversely in short, the currnet hike in interest rate is due to higher inflation rate, which shall be good for REIT sector in long term, in my view. While finance cost would increse due to higher interest, the increase in lease from inflation would result in higher surplus cashflow for distribution in next 2-3 years. There could be some other reasons like change in office demand due to WFH culture. If that factor is playing, then i would be very cautius for my holding. We would get that answers probably in second quarter results. Till then i would continue to hold by investment.
Disclosure: I consider InvIT/REIT as my fixed income portfolio. Embassy REIT is my second largest holding after RBI Bonds. Hence my view may be positively biased. Not A SEBI registeed advisor. No trade in last 3 months. Not recommending any investment actions.
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