BusinessWire India

Bengaluru (Karnataka) [India], October 29: Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) ('Embassy REIT'), India's first listed REIT and the largest office REIT in Asia by area, reported results today for the second quarter ended September 30, 2026. 

Amit Shetty, Chief Executive Officer of Embassy REIT, said,

"We delivered an exceptional quarter, with 1.5 msf of leasing driven by continued GCC demand and healthy rental growth. The pre-lease at Embassy TechVillage at a 15% premium to market rents underscores the pricing power of our world-class office campuses. We are particularly encouraged by the renewed momentum in Pune, where leasing activity contributed to a 300-basis-point improvement in occupancy during the quarter. Our robust operating performance coupled with double-digit growth in revenue and NOI, enabled us to declare our highest-ever quarterly distributions. With strong business momentum and continued progress across our portfolio, we are well-positioned to capitalise on India's structural office demand and deliver sustained growth for all our stakeholders."

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 Rs. 670 crores or Rs. 7.07 per unit for Q2 FY2027. The record date for the Q2 FY2027 distribution is October 31, 2026, and the distribution will be paid on or before November 06, 2026. 

Business Highlights

-         Leased 1.5 msf during the quarter, with GCCs driving 85% of leasing demand; new leases of 0.9 msf signed at an average 9% premium to market rents

-         Pre-leased an entire 0.5 msf building at Embassy TechVillage in Bengaluru to a global engineering company at a 15% premium to current market rents

-         Leased 0.2 msf across three Pune assets, contributing approximately 25% of new leasing during the quarter

-         Portfolio occupancy at 93% by value with Bengaluru, Chennai and Noida at 94% and Mumbai at 100%

Financial Highlights

-         Grew Revenue from Operations by 16% YoY to Rs. 1,303 crores and Net Operating Income (NOI) by 15% YoY to Rs. 1,069 crores

-         Delivered the highest-ever quarterly distributions of Rs. 670 crores or Rs. 7.07 per unit, representing 9% YoY growth

-         Raised Rs. 2,050 crores of debt at a blended interest rate of 7.14%, including a first-of-its-kind Rs. 1,000 crore financing - the first bank financing to an Indian REIT at the trust level under RBI's new lending framework

-         Gross Asset Value (GAV) increased 16% YoY to ~Rs. 74,000 crores, while Net Asset Value (NAV) rose 18% YoY to Rs. 524.74 per unit, supported by higher market rents, new building additions and favorable valuation assumptions

Operational & Growth Highlights

-         Delivered a 0.6 msf office block at Embassy Splendid TechZone in Chennai, fully committed to a leading US GCC; current development pipeline of 5.6 msf in Bengaluru and Chennai

-         Hotel revenue grew 22% YoY in Q2, with a 10% increase in average daily rates (ADR). The newly opened Hilton Garden Inn at Embassy TechVillage achieved operating cash break-even within the first quarter of launch

-         Completed the acquisition of 8,048 sq. ft. of fully leased retail space at FIFC in Mumbai's BKC, further consolidating ownership in this flagship asset

-         Included in the Nifty 500 and Nifty Midcap 150, becoming the only REIT in the latter, alongside other key NSE indices, marking a significant milestone in enhancing investor access to India's growing REIT market

Investor Materials and Quarterly Investor Call Details

Embassy REIT has released a package of information on the quarterly results and performance, that includes (i) standalone and consolidated financial results for the quarter and half-year ended September 30, 2026 (ii) an earnings presentation covering Q2 FY2027 results and, (iii) supplemental operating and financial data book that conforms with leading reporting practices across global REITs. All these materials are available in the Investors section of our website at www.embassyofficeparks.com.

Embassy REIT will host a conference call on October 29, 2026 at 08:30 hours Indian Standard Time to discuss the Q2 FY2027 results. A replay of the call will be available in the Investors section of our website at www.embassyofficeparks.com.

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