Embassy REIT Delivers Stellar Quarterly Performance with Record Distributions
India's pioneering real estate investment trust, Embassy Office Parks REIT, has announced exceptional financial results for the second quarter concluding on September 30, 2025. The REIT demonstrated robust growth across all key metrics, including achieving its highest-ever quarterly distributions since its market debut in April 2019.
Strong Financial Growth and Record Payouts
The company reported a significant 13% year-on-year increase in revenue from operations, which climbed to Rs. 1,124 crores. More impressively, the Net Operating Income (NOI) surged by 15% YoY to reach Rs. 927 crores, indicating improved operational efficiency.
In a major win for investors, the Board declared a record quarterly distribution of Rs. 617 crores, equivalent to Rs. 6.51 per unit. This represents a substantial 12% increase compared to the same period last year. The distribution was scheduled for payment on or before November 14, 2025, with the record date set for November 08, 2025.
Robust Leasing Activity Drives Portfolio Occupancy Higher
The quarter witnessed tremendous leasing momentum with 1.5 million square feet (msf) leased across 20 separate deals. This impressive volume included approximately 1.0 msf of new leases, 0.4 msf of renewals, and around 64,000 square feet of pre-leases in Chennai.
This leasing success propelled the overall portfolio occupancy to 93% by value and 90% by area. The occupancy strength was consistent across major markets:
- Bengaluru: 95% occupancy (representing 75% of Gross Asset Value)
- Mumbai: 100% occupancy
- Chennai: 96% occupancy
- Noida: 92% occupancy
Bengaluru emerged as the dominant market, accounting for over 85% of the total leasing activity during the quarter. The city's continued appeal to Global Capability Centers (GCCs) and major corporations fueled this performance.
Strategic Growth Initiatives and Future Pipeline
Embassy REIT continues to execute its growth strategy effectively. The company delivered 0.9 msf of new development in Bengaluru, which is already 100% leased to a Fortune 500 retail major.
The REIT is now launching 2 msf of new development in Chennai, bringing the total development pipeline to 7.2 msf across Bengaluru and Chennai. Notably, 42% of this pipeline is already pre-leased (including expansion options), promising attractive yields on cost.
On the capital front, Embassy REIT successfully completed India's first-ever 10-year NCD issuance by a REIT, raising Rs. 2,000 crores from marquee institutional investors. Additionally, the company raised Rs. 400 crore via commercial paper at approximately 6.44% per annum, underscoring its strong credit fundamentals.
The Gross Asset Value saw an 8% year-on-year increase to Rs. 63,980 crores, while the Net Asset Value per unit grew by 7% to Rs. 445.91, based on independent valuation as of September 2025.
Commenting on the outstanding results, Amit Shetty, Chief Executive Officer of Embassy REIT, stated: "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 our stakeholders."
The company's hospitality portfolio also showed strong performance, with EBITDA rising 12% year-on-year, driven by a 16% increase in Average Daily Rates (ADRs) across operating hotels.
With these robust results and a healthy development pipeline, Embassy REIT continues to reinforce its position as India's first listed REIT and the largest office REIT in Asia by area, operating a 50.8 msf portfolio of 14 office parks across India's premier office markets.
