BENGALURU: Embassy Office Parks Management Services will go ahead with its plan to distribute dividend to its shareholders despite uncertainties due to the novel coronavirus outbreak and the subsequent lockdown, a person aware of the development said.
Embassy Office Parks is the manager to Embassy Real Estate Investment Trust (REIT) and operates business parks in Bengaluru, Pune, Mumbai and the National Capital Region.
“There are no plans to hold back the dividend,” the person told ET on condition of anonymity. “It will be distributed by mid-May. The distributions guidance for the full year FY 2020 is now in the range of Rs 23.9 to Rs 24 per unit, i.e., approximately 96.5% to 97% of our initial target.”
Embassy Group and Blackstone did not comment on the story.
The board of directors of Embassy REIT had earlier declared quarterly distribution totalling Rs 470.70 crore, or Rs 6.10 per unit, representing a distribution payout ratio of 99.9% for Q3.
Cumulatively, the company has now declared a year-to-date (YTD) distribution of Rs 13,50.40 crore or Rs.17.5 per unit with a YTD distribution payout ratio of 99.65% for the quarter ended December 2019.
“Business fundamentals remain strong and we believe that our proactive asset management approach will continue to drive meaningful results over the medium and long-term,” the source said.
Additionally, the company plans to raise a second round of funds depending on global liquidity situation and the containment of the Covid-19 pandemic globally.
Embassy Office Parks REITis also yet to take a final decision on the purchase of 6.2 million square feet of completed office premises and 2.5 million square feet of under-construction area in Embassy TechVillage.
Embassy Group had offered this asset to the REIT Board as the rights of first offer notice last year.
Embassy Office Parks REIT, where Blackstone is a shareholder, listed its units in April 2019, after an IPO where it raised Rs 4,750 crore. Bengaluru-based real estate firm Embassy Property Developments and Blackstone Group LP are the main sponsors of the REIT.
April 08, 2020