Embassy REIT Reports 13% YoY Rise in Revenue for Q1 FY26

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, reported results today for the first quarter ended June 30, 2025.

Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said,“We are delighted to report a strong start to FY2026, with 2.0 msf of leasing this quarter and growing momentum in Chennai. Our revenue grew 13% YoY, and distributions grew by 4% YoY, reflecting the continued strength of our portfolio. We also raised ₹4,225 crores of debt at a blended coupon of 7.18% to opportunistically take advantage of a favorable rate environment, and to position the REIT well for future growth opportunities.”

The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its Board Meeting held earlier today, declared a distribution of ₹550 crores or ₹5.80 per unit for Q1 FY2026. The record date for the Q1 FY2026 distribution is August 05, 2025, and the distribution will be paid on or before August 12, 2025.

Business Highlights

• Leased 2.0 msf across 25 deals in Q1 FY2026, up 9% YoY. This includes ~1.0 msf of new leases, 360k sf of renewals and 665k sf of pre-leases
• Strong pre-leasing activity led by Chennai, with over 500k sf pre-leased, including to a leading global healthcare company
• Over 90% occupancy across all Bengaluru assets (75% of Gross Asset Value); 10 of 14 properties above 90%, including 6 at 100% occupancy. GCCs remain key drivers, contributing 64% of rentals

Financial Highlights

• Grew Revenue from Operations by 13% YoY to ₹1,060 crores and Net Operating Income (NOI) by 15% YoY to ₹872 crores
• Delivered Distributions of ₹550 crores or ₹5.80 per unit, up 4% YoY
• Raised ₹4,225 crores of debt at a blended coupon of 7.18%. This includes a ₹750 crore NCD issuance at a 6.97% coupon, which is the lowest rate achieved by the REIT in the last four years

Operational & Growth Highlights

• Entered binding documents for divestment of ~376k square feet of two strata owned blocks at Embassy Manyata in Bengaluru as part of strategic capital recycling
• Received an invitation to offer from Embassy Developments Limited for a potential ~3.3 msf commercial project in Whitefield, Bengaluru; under evaluation per regulations and governance protocols
• Current development pipeline of 6.1 msf in Bengaluru & Chennai, around 60% pre-leased, reflecting strong forward demand