BusinessWire India
Bengaluru (Karnataka) [India], July 31: 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 first quarter ended June 30, 2026.
Amit Shetty, Chief Executive Officer of Embassy REIT, said,
"We are delighted to report a strong start to FY2027, with revenue and NOI growing 17% YoY and 1.3 msf of leasing delivered across our portfolio. GCCs continued to anchor demand, accounting for 81% of quarterly leasing, while AI-related companies contributed 21% of new leasing. This reflects the growing depth and quality of India's office market, with companies shaping the AI-driven economy choosing our campuses as platforms for growth. This strong momentum is also being complemented by greater recognition of REITs in India's capital markets. Our recent inclusion in some of the newly launched domestic indices marks an important milestone in the evolution of REITs as a mainstream investment asset class in India. These benchmarks will support index-linked products, enhance market visibility and broaden investor participation."
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. 598 crores or Rs. 6.31 per unit for Q1 FY2027. The record date for the Q1 FY2027 distribution is August 4, 2026, and the distribution will be paid on or before August 11, 2026.
Business Highlights
- Leased 1.3 msf across 17 deals, including 0.7 msf of new leases at 11% re-leasing spreads and 0.6 msf of renewals at 9% higher spreads
- GCCs accounted for 81% of Q1 leasing. New entrants drove 86% of new leasing, including 21% from AI-related companies, with leases signed at an 8% average premium to market rents
- Portfolio occupancy stood at 93% by value, with Mumbai at 100%, Bengaluru at 95%, Noida at 93% and Chennai at 92%
Financial Highlights
- Grew Revenue from Operations by 17% YoY to Rs. 1,241 crores and Net Operating Income (NOI) by 17% YoY to Rs. 1,020 crores
- Delivered quarterly distributions of Rs. 598 crores or Rs. 6.31 per unit, up 9% YoY
- Raised Rs. 3,045 crores of debt at a blended rate of 7.46% p.a. through a combination of commercial papers, NCD and bank loans
- Hotel NOI grew 6% year-on-year, supported by a 100-bps increase in occupancy to 61% and 5% ADR growth
Operational & Growth Highlights
- Launched the 211-key Hilton Garden Inn, the first phase of the 529-key dual-branded Hilton development at Embassy TechVillage in Bengaluru; the 318-key 5-star Hilton with a 37k sq ft convention centre is scheduled to open later this year
- Announced that Four Seasons will conclude its management of the hotel at Embassy ONE, Bengaluru, effective February 28, 2027. Evaluating potential new hospitality operators and expect to finalize a new partner in the near term
- Development pipeline of 6.2 msf with a Rs. 3,500 crores capital outlay; ~60% of deliveries over the next two years are already pre-leased
- Solar plant operated at optimum capacity, generating 44 million units in Q1 and recording a stabilised quarterly NOI of Rs. 23 crores
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 ended June 30, 2026, (ii) an earnings presentation covering Q1 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 July 30, 2026 at 18:00 hours Indian Standard Time to discuss the Q1 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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