Embassy REIT: Is this “Blackstone” promoted REIT is real diamond?

While the concerns about promoters of Embassy REIT is valid, the structure of trust, too an extent support the investor in REIT. Also, the problem that Embassy group is facing liquidity issues which is resulting in selling REIT units resulting in higher supplier may act against price of REIT, in longer term, it would kind of insulate REIT from the Embassy group issue (with declining stake and hence having limited say in working).

Blackstone default in Nordic company debt has resulted in 1.4% decline in equity share price of the company on stock exchange. While default on debt by Blackstone group entity is really concern, the equity market price movement, at least at primary stage, does not indicate any adverse development on credit profile of the company.

The company refinancing debt from NBFC is not so much concern in my view given that it reduce cost and also provide another class of lender to REIT sector as mentioned in Press release. . Further, loan from reputed NBFC Bajaj Finance which has among the best underwriting standards in India in my view, is strong support to credit profile in my view.

Having said that, the point raised by @VALUE2017 are really worrisome and need close monitoring. The constant selling from both promoter groups in REIT does not provide comfort to unit price in short to medium term coupled with adverse budget announcement of taxability of Capital return being taxable in hands of REIT/InvIT investors from 1 April 2023. As Embassy REIT is among my top holdings, I am cautiously evaluting my investment. For me, Q4FY2023 con call would be critical event when the REIT would share guideance for FY24 distribution. I eagarly look forward to increase in distribution guideance from Embassy REIT. I shall take call about change in investment holding post con call.

Thanks once again to value2017 for brinning all chellanging issues faced by REIT.

Disclosure: I am investor in Embassy REIT/IndiaGrid InvIT/ IRB InvIT. My view may be positively biased due to my investment. I may change my investment view without informing forum. I am not recommeding any investment in Embassy REIT. Not a SEBI Registered investment advisor.