NEW DELHI: Embassy Office Parks REIT announced a 17% year-over-year increase in net operating income (NOI), amounting to ₹1,020 crore for the quarter ending June 30, 2026.
Net consolidated total income rose by 16.6% to ₹1,260 crore in Q1 FY27, compared to ₹1,080.81 crore during the same period last year.
The REIT’s net consolidated profit after tax surged 25.8% to ₹195.21 crore from ₹155.16 crore in Q1 FY26.
The board of directors of Embassy Office Parks Management Services, which manages Embassy REIT, has approved a distribution of ₹598.12 crore, translating to ₹6.31 per unit for the quarter.
This distribution includes ₹35.07 crore (₹0.37 per unit) as interest, ₹75.83 crore (₹0.80 per unit) as dividends, and ₹487.22 crore (₹5.14 per unit) towards debt repayment at the SPV level.
The company completed gross leasing of 1.3 million sq. ft. across 17 transactions during the quarter, comprising about 0.7 million sq. ft. for new leases and 0.6 million sq. ft. for renewals.
The REIT achieved an average re-leasing spread of 11% on new leases and 9% on renewals, with new leases signed at an average premium of 8% over current market rents.
Global capability centers made up 81% of the leasing activity during the quarter, with new entrants contributing 86% of new leases, including 21% from AI-related firms.
Portfolio occupancy was 93% by value, with 100% occupancy in Mumbai, 95% in Bengaluru, 93% in Noida, and 92% in Chennai.
The REIT has around 4.6 million sq. ft. of vacant space available for lease. Its development pipeline includes 6.2 million sq. ft. at a projected capital expenditure of approximately ₹3,500 crore, of which 60% has already been pre-leased.
Potential acquisition opportunities total up to 12.6 million sq. ft. from third parties and Embassy Group.
During the quarter, the company raised ₹3,045 crore in debt at a blended interest rate of 7.46% through various instruments.
The total debt book is now about ₹23,000 crore, with leverage at 31% and an average debt cost of 7.32%. Fixed-rate borrowings make up 59% of the total debt.
NOI from the hotel portfolio increased by 6% year-over-year, with hotel occupancy improving by 100 basis points to 61%, and average daily rates rising by 5%.
During the quarter, the REIT launched the 211-key Hilton Garden Inn, the first phase of a 529-key dual-branded Hilton development at Embassy TechVillage in Bengaluru. A 318-key five-star Hilton hotel, along with a 37,000-sq.-ft. convention center, is set to open later in 2026.
The board has also approved the termination of project agreements with the Four Seasons Group, which oversees the 230-key hotel at Embassy One in Bengaluru, effective February 28, 2027. Embassy REIT is currently evaluating potential hospitality operators for this property.
The board has agreed to a proposed conveyance by the Karnataka Industrial Areas Development Board of approximately 24 guntas (0.6 acres) of land in Thanisandra, Bengaluru, to Manyata Promoters, a subsidiary of Embassy REIT.
The parcel is adjacent to Embassy Manyata Business Park. Manyata Promoters paid roughly ₹1.09 crore to KIADB for this allotment.
The REIT’s solar plant generated 44 million units of electricity in the quarter, yielding a stabilized quarterly NOI of ₹23 crore.
