NEW DELHI: Embassy Office Parks REIT (Embassy REIT) reported a 19% year-on-year increase in net operating income (NOI), reaching ₹985 crore for the third quarter ending December 31, 2025. Operational revenue rose by 17% year-on-year to ₹1,193 crore.
The board of directors for Embassy Office Parks Management Services (EOPMSPL), which manages Embassy REIT, has declared a distribution of ₹613 crore, equating to ₹6.47 per unit for the quarter.
Additionally, the company raised ₹400 crore via a commercial paper at an effective interest rate of 6.44% per annum, successfully reducing its in-place cost of debt by 61 bps over the last nine months to 7.29%.
Amit Shetty, CEO of the company, stated, “We have achieved 4.6 million sq ft of leasing year-to-date, recorded our highest-ever revenue and NOI, announced our first third-party acquisition, and continued to improve distributions for our unitholders.”
The company successfully leased 1.1 million sq ft across 22 transactions, which included 0.8 million sq ft of new leases with a re-leasing spread of 17%, signed at an average of 5% above market rates, with Bengaluru accounting for over two-thirds of total leasing activity.
Overall portfolio occupancy reached 94% by value, with three out of five cities maintaining occupancy rates of 95% or higher.
The hotel segment’s NOI saw a year-on-year growth of 13%, attributed to a 100 bps increase in occupancy to 60% alongside an 11% rise in average daily rate (ADR).
The company delivered 0.4 million sq ft of new development at Embassy Splendid TechZone in Chennai, fully leased to a global healthcare firm. It also launched a third redevelopment project of 0.8 million sq ft at Embassy Manyata in Bengaluru, with a yield on cost of 23%, and proposed the addition of a 116-key hotel at Embassy TechZone, Pune, to enhance the park’s ecosystem.
Furthermore, the company announced a third-party acquisition of a 0.3 million sq ft premium office asset at Embassy GolfLinks in Bengaluru, completed a ₹530 crore divestment at Embassy Manyata, and achieved approximately 25% total returns in CY2025 while expanding its unitholder base to over 125,000, a significant increase from 4,000 at its IPO.
Embassy REIT appointed Prabhakar Kalavacherla as an independent director on its board, effective February 16, 2026, for a term of five years.
The company has received an invitation to offer for the acquisition of Embassy Zenith, a 0.4 million sq ft office tower in Bengaluru.
