#EmbassyREIT #CommercialRealEstate #REITIndia #LeasingGrowth #OfficeSpaceIndia #Q1Results #DebtManagement #NOIGrowth #ChennaiRealEstate #BengaluruCommercial
Chandigarh – Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602), India’s first listed and Asia’s largest office REIT by area, has announced robust financial and operational performance for the first quarter of FY2026 ended June 30, 2025. The quarter witnessed Embassy REIT achieving its highest-ever first-quarter leasing with 2.0 million square feet (msf) leased across 25 transactions, underlining strong demand in the commercial real estate sector.
Leasing and Occupancy Highlights
In Q1 FY2026, Embassy REIT executed leasing deals totaling 2.0 msf, which included approximately 1.0 msf of new leases, 360,000 sq. ft. in renewals, and 665,000 sq. ft. in pre-leases. This marks a 9% year-on-year increase and demonstrates the continued strength and attractiveness of its portfolio.
Chennai led the pre-leasing momentum with over 500,000 sq. ft. leased at Embassy Splendid TechZone, including to a major global healthcare player. Bengaluru, which represents 75% of Embassy REIT’s gross asset value, continues to show strong fundamentals, with over 90% occupancy across all assets in the city. Notably, 10 out of the 14 total properties recorded occupancy rates above 90%, with 6 assets achieving full occupancy. Global Capability Centers (GCCs) remained the dominant driver, contributing 64% of the REIT’s rental income.
Financial Performance
Embassy REIT reported a 13% year-on-year increase in revenue from operations, reaching ₹1,060 crores. Net Operating Income (NOI) for the quarter rose by 15% year-on-year to ₹872 crores, reflecting improved leasing and rent escalations. The REIT also declared distributions of ₹550 crores or ₹5.80 per unit, which is a 4% increase compared to Q1 FY2025.
The Board of Directors of Embassy Office Parks Management Services Private Limited, the Manager to Embassy REIT, approved this distribution at their board meeting held on August 1, 2025. The record date for the distribution is August 5, 2025, and the payouts are scheduled on or before August 12, 2025.
Debt Management and Capital Raising
In a strategic move to optimize capital structure and capture favorable market interest rates, Embassy REIT raised ₹4,225 crores in debt during the quarter at a blended coupon rate of 7.18%. This includes a ₹750 crore Non-Convertible Debenture (NCD) issuance at 6.97%, the lowest coupon secured by the REIT in the past four years. The fresh capital is aimed at supporting future development and refinancing opportunities.
Strategic Divestments and Pipeline Developments
The REIT also continued its focus on capital recycling and strategic asset management. It entered binding agreements to divest approximately 376,000 sq. ft. of strata-owned space at Embassy Manyata Business Park in Bengaluru. This move is aligned with the REIT’s capital recycling strategy to optimize portfolio returns.
Additionally, Embassy REIT has received an invitation from Embassy Developments Limited for a potential commercial project of approximately 3.3 msf in Whitefield, Bengaluru. This project is under regulatory evaluation and internal governance review.
The current development pipeline stands at 6.1 msf across Bengaluru and Chennai, of which nearly 60% is already pre-leased — a clear indicator of strong forward leasing demand.
CEO’s Statement
Commenting on the quarterly performance, Ritwik Bhattacharjee, CEO 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.”
Investor Communication and Earnings Call
Embassy REIT has released detailed investor materials for Q1 FY2026, including:
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Standalone and consolidated financial results
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Q1 FY2026 earnings presentation
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Supplemental operating and financial data book
These materials follow global REIT reporting best practices and are available on the Investors section of Embassy REIT’s website.
An investor call was hosted on July 31, 2025, at 6:00 PM IST to discuss the quarterly results. A replay of the call is also available online for stakeholders.
Key Takeaways
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Record Leasing: 2.0 msf in Q1 — highest ever for a first quarter
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Revenue Growth: 13% YoY increase to ₹1,060 crores
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NOI Growth: 15% YoY rise to ₹872 crores
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Pre-leasing Boom: Led by Chennai, over 500k sq. ft. pre-leased
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Debt Optimization: ₹4,225 crores raised at 7.18% blended coupon
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Capital Recycling: Sale of 376k sq. ft. at Embassy Manyata initiated
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Pipeline: 6.1 msf in progress; 60% already pre-leased
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#EmbassyREIT #CommercialRealEstate #REITIndia #LeasingGrowth #OfficeSpaceIndia #Q1Results #DebtManagement #NOIGrowth #ChennaiRealEstate #BengaluruCommercial #REITDistribution #EmbassyOfficeParks #CapitalRecycling
