Budget Announcements Impact 40% Of Our Distribution, Says Embassy REIT

Announcements made in Budget 2023 have impacted around 40% of current distribution, according to Embassy Office Parks REIT Ltd.

"...the recent announcements in the Budget have created some uncertainties in the market regarding the taxation of one of the distribution components," it said in an exchange filing on Friday.

The country's first publicly listed real estate investment trust said it is now in the process of evaluating the next steps to be taken along with industry participants, including suitable representations.

According to the Finance Bill, 2023, distributions—categorised as repayment of debt—will be taxed as 'income from other sources' in the hands of the unitholders of InvITs and REITs.