Embassy REIT’s Statement on Proposed Amendments in REIT Taxation
While the recent announcements in the budget have created some uncertainties in the market regarding the taxation of one of the distribution components, the announcement impacts around 40% of our current distributions. Plus, REITs are a total return product combining steady distributions with upside on account of capital appreciation driven by growth levers. We, along with other Industry participants, are currently evaluating next steps, including suitable representations given the to-date attractiveness and success of the product, especially to retail investors. As demonstrated by our recent 3QFY2023 performance, the results are strong, our business model is growth-oriented, and paid out in the 15th consecutive quarter of 100% distributions, now totalling Rs.7,300 crores. At 27% leverage and a 7.2% cost of capital with AAA rating, the company is are proud to have the best credit in the real estate industry. The best-in-class unitholder register comprises sovereign wealth funds, global mutual funds, domestic mutual funds, life insurers, family offices, High net worth individuals and retail investors. It will continue to serve the interests of all our stakeholders by doing what it has done before being listed and since it is listed: providing the best office solutions to the world’s best companies.
Tags : announcements budget taxation industry