Embassy Office Parks REIT delivered a strong operational and financial performance in the third quarter of FY2026, reporting a 17 per cent year-on-year growth in revenue and its highest-ever revenue and net operating income. Driven by sustained leasing momentum, robust demand from global capability centres (GCCs), and disciplined capital management, the REIT continued to strengthen its portfolio across key gateway markets. During the quarter, Embassy REIT also announced its first third-party acquisition and is evaluating the acquisition of Embassy Zenith, a 0.4 million sq ft prime office asset in Bengaluru, reinforcing its focus on high-quality, income-accretive growth.

Amit Shetty, Chief Executive Officer of Embassy REIT, said, “Q3 FY2026 marked another strong quarter for Embassy REIT, underpinned by sustained leasing momentum, robust GCC demand across our gateway markets, and disciplined financial execution. We delivered 4.6 msf of leasing year-to-date, reported our highest-ever Revenue and NOI, announced our first third-party acquisition and continued to enhance distributions for our unitholders. The invitation to offer for Embassy Zenith reflects our focus on acquiring high-quality, income-accretive assets that strengthen our world-class portfolio and create long-term value.”

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 ₹613 crores or ₹6.47 per unit for the quarter. The record date for the Q3 FY2026 distribution is February 11, 2026, and the distribution will be paid on or before February 18, 2026. 

Business Highlights

·         Leased 1.1 msf across 22 deals, including 0.8 msf of new leases at 17% re-leasing spreads; signed at an average 5% premium to market rents, with Bengaluru contributing over two-thirds of total leasing

·         Strong traction in Chennai from large global companies, anchoring 42% of the REIT’s development pipeline

·         Overall portfolio occupancy stood at 94% by value, with 3 out of 5 cities at or above 95% occupancy

Financial Highlights

·         Grew Revenue from Operations by 17% YoY to ₹1,193 crores and Net Operating Income (NOI) by 19% YoY to ₹985 crores

·         Delivered quarterly distributions of ₹613 crores or ₹6.47 per unit, up 10% YoY

·         Raised ₹400 crores through a commercial paper at an effective rate of 6.44% per annum. Reduced in-place cost of debt by 61 bps (over 9 months) to 7.29% 

·         Hotel segment NOI grew by 13% YoY, driven by 100 bps increase in occupancy to 60% as well as 11% growth in ADR

Operational & Growth Highlights

·         Delivered 0.4 msf new development at Embassy Splendid TechZone in Chennai, 100% leased to a global healthcare firm

·         Launched third redevelopment project of 0.8 msf at Embassy Manyata in Bengaluru at a 23% yield on cost

·         Proposed addition of a 116-key hotel at Embassy TechZone, Pune, to enhance park ecosystem

·         Announced third-party acquisition of a 0.3 msf marquee office asset at Embassy GolfLinks in Bengaluru

·         Completed ₹530 crore divestment at Embassy Manyata in Bengaluru

·         Delivered ~25% total returns in CY2025, while expanding the unitholder base to over 125,000, up from 4,000 at IPO