Embassy REIT reported its set of Q1FY22 earnings with sales rising 43 percent on year-on-year (YoY) basis. Mike Holland, CEO, Embassy REIT discussed this further.
“In the past quarter we have achieved 13 percent escalation on approximately 2.2 million sq ft of our existing leases. We have seen rentals hold up for good quality properties across the country over the past year,” he said in an interview with CNBC-TV18.
“So rentals, we see, still getting the ability to achieve a contracted escalations, we think we will get 7.7 million sq ft of those this year. That equates to about 14 percent increase in our rentals,” he added.
“Definitely from a larger supply/demand position over the next 12 months, we are very confident that there is significantly latent demand coming through partially because of this record hiring. We see the next 12-18 months as being very positive for our business,” he shared.
On hospitality segment, he mentioned, “We are beginning to see some trade interestingly not so much business travel trades but more wedding and private use in a couple of our hotels. But it is a very small part of our overall business. Pre-pandemic it was around 1 percent of our net operating income. We have those hotels as ancillary support to our largescale business parks and we still see that as being valid in the long-term but definitely it is going to be well into 2022 before we see a recovery in that space.”
For the full interview, watch the accompanying video.