Embassy Office Parks REIT, India’s first listed real estate investment trust and the largest office REIT in Asia by area, delivered a stellar performance in the second quarter of FY2026, driven by robust leasing momentum, record distributions, and steady portfolio growth.
For the quarter ended September 30, 2025, Embassy REIT reported its highest-ever quarterly distributions of ₹617 crore, marking a 12% year-on-year (YoY) increase. Portfolio occupancy rose to 93% by value, with 1.5 million square feet (msf) leased across 20 deals to leading global capability centers (GCCs) and corporate clients.
Revenue from operations grew 13% YoY to ₹1,124 crore, while Net Operating Income (NOI) climbed 15% YoY to ₹927 crore, underscoring the strength of Embassy REIT’s premium office portfolio.
Amit Shetty, Chief Executive Officer of Embassy REIT, said:
“We are pleased to report an outstanding quarter across our business — from strong leasing momentum to record distributions. We leased 1.5 msf this quarter to marquee names, occupancy climbed to 93%, and we delivered our highest quarterly distributions since listing. As we scale our development pipeline and evaluate further growth opportunities, we remain steadfast in our commitment to build enduring value for all stakeholders.”
The Board of Directors of Embassy Office Parks Management Services Private Limited (EOPMSPL), Manager to Embassy REIT, approved a distribution of ₹6.51 per unit for Q2 FY2026, totaling ₹617 crore. The record date is November 8, 2025, and the distribution will be paid on or before November 14, 2025.
Business Momentum
During the quarter, Embassy REIT leased 1.5 msf of space, including 1.0 msf of new leases, 0.4 msf of renewals, and 64,000 sq. ft. of pre-leases in Chennai. Bengaluru accounted for over 85% of total leasing, supported by strong demand from GCCs. Chennai also recorded solid traction, aided by the REIT’s newly acquired asset in a key micro-market.
Occupancy remained robust across markets — Bengaluru at 95%, Mumbai at 100%, Chennai at 96%, and Noida at 92%.
Financial and Capital Market Highlights
Embassy REIT continued to strengthen its balance sheet and credit profile:
- Successfully completed India’s first-ever 10-year NCD issuance by a REIT, raising ₹2,000 crore from institutional investors.
- Raised an additional ₹400 crore via commercial paper at an attractive rate of ~6.44% per annum.
- As per the September 2025 valuation, Gross Asset Value (GAV) increased 8% YoY to ₹63,980 crore, while Net Asset Value (NAV) rose 7% YoY to ₹445.91 per unit.
Operational & Growth Outlook
Embassy REIT delivered 0.9 msf of new development in Bengaluru, fully leased to a Fortune 500 retail major, and announced the launch of 2 msf of new projects in Chennai. This brings the total development pipeline to 7.2 msf, of which 42% is already pre-leased, offering attractive yields on cost.
The hospitality segment also showed continued growth, with EBITDA up 12% YoY, supported by a 16% increase in average daily rates (ADRs) across operating hotels.
Looking ahead, Embassy REIT said it is actively evaluating multiple acquisition opportunities from both third parties and the Embassy Group, as it continues to scale its high-quality, income-generating portfolio.
