Bengaluru: Embassy Office Parks REIT reported a strong operational and financial performance for the quarter ended December 2025, led by sustained leasing momentum, rising rentals and continued demand from global capability centres (GCCs), reinforcing the recovery in India’s Grade A office market.India’s largest office REIT leased 1.1 million sq ft across 22 deals during the quarter, taking its total leasing for the first nine months of FY26 to 4.6 million sq ft. The leasing traction was supported by new leases accounting for 0.8 million sq ft, signed at re-leasing spreads of 17%, with rentals averaging 5% above prevailing market levels. Bengaluru remained the key growth driver, contributing more than two-thirds of the quarter’s leasing activity. The REIT’s overall portfolio occupancy stood at 94% by value during the quarter, with three of its five markets reporting occupancy levels of 95% or higher, indicating stable demand across core office clusters. Chennai also emerged as a strong leasing market, with large multinational occupiers anchoring nearly 42% of the REIT’s ongoing development pipeline. The leasing momentum translated into strong financial growth, with Embassy REIT reporting its highest-ever quarterly revenue and net operating income (NOI). Revenue from operations rose 17% year-on-year to ₹1,193 crore, while NOI grew 19% to ₹985 crore, reflecting operating leverage and rental escalations across key assets. The board declared a distribution of ₹613 crore, or ₹6.47 per unit, for the quarter, marking a 10% year-on-year increase. The record date for the distribution is February 11, 2026, with payouts scheduled on or before February 18, 2026. Live EventsAmit Shetty, chief executive officer of Embassy REIT, said the performance underscores sustained occupier demand and disciplined capital management. “The quarter was underpinned by strong leasing activity, robust GCC demand across gateway markets and continued focus on enhancing unitholder returns,” he said.The REIT also strengthened its balance sheet during the quarter, raising ₹400 crore through commercial paper at an effective interest rate of 6.44%. The move helped reduce its in-place cost of debt by 61 basis points over the past nine months to 7.29%, supporting profitability and future growth plans. Beyond leasing, Embassy REIT continued to expand its portfolio through both acquisitions and development. The trust received an invitation to acquire Embassy Zenith, a 0.4 million sq ft prime office tower in Bengaluru that is fully leased to a global technology company. On the development front, the REIT launched its third redevelopment project at Embassy Manyata in Bengaluru, adding 0.8 million sq ft with an expected yield on cost of 23%. Its total development pipeline currently stands at 7.6 million sq ft, indicating significant medium-term supply addition within existing office parks. The trust also completed delivery of 0.4 million sq ft of office space at Embassy Splendid TechZone in Chennai, which is fully leased to a global healthcare firm. Additionally, it announced the acquisition of a 0.3 million sq ft marquee office asset at Embassy GolfLinks in Bengaluru, while monetising assets worth ₹530 crore at Embassy Manyata, highlighting active portfolio recycling. The potential acquisition marks its first third-party asset buy, signalling a strategic shift towards inorganic growth.The hospitality segment, an ancillary revenue contributor, also recorded improved performance during the quarter. Hotel segment NOI grew 13% year-on-year, aided by a 100 basis point increase in occupancy to 60% and an 11% rise in average daily room rates. The REIT has also proposed adding a 116-key hotel at Embassy TechZone in Pune to strengthen ecosystem offerings at its business parks. Embassy REIT, which owns and operates over 50 million sq ft of office space across Bengaluru, Mumbai, Pune, NCR and Chennai, continues to benefit from India’s growing GCC footprint and strong demand for integrated office ecosystems. The REIT delivered approximately 25% total returns in calendar year 2025 and expanded its investor base to more than 125,000 unitholders, compared with around 4,000 investors at the time of listing. Industry experts say Embassy REIT’s strong leasing pipeline, steady rental growth and development-led expansion place it favourably amid improving office demand trends, particularly from technology, engineering and global services firms expanding their India operations.With continued asset acquisitions, redevelopment activity and stable occupancy levels, Embassy REIT is expected to maintain growth momentum, while its strong balance sheet and distribution track record continue to support investor confidence in India’s listed office real estate platform.



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