Commercial office REITs to add 40-45 MSF by FY28; leasable area set for 30% surge: Crisil
New Delhi, June 23 -- Domestic commercial office real estate investment trusts (REITs) are set to expand leasable area by 40-45 million square feet (MSF) to 190-195 MSF by the end of next fiscal, a growth of 25-30 per cent, driven by planned asset additions and the recent listing of a new REIT according to Crisil Ratings.
Credit profiles are expected to remain healthy on steady rental income growth, high occupancy and controlled leverage, the ratings agency said.
Crisil Ratings' analysis of five listed commercial office REITs, including the one listed this fiscal, shows the expansion will be led by inorganic additions. Of the 40-45 MSF increase in leasable area, 16 MSF will come from the recent listing of a new REIT. Inorganic addition ...
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