NEW DELHI: Embassy Office Parks REIT (Embassy REIT) reported a 15% year-on-year increase in its net operating income (NOI), totaling ₹872 crore for the quarter ending June 30, 2025, according to a BSE filing. The consolidated net total income reached ₹1,080.81 crore in Q1 FY26, compared to ₹981.34 crore in Q1 FY25.
The company raised ₹4,225 crore in debt at a blended coupon of 7.18%, which includes a ₹750 crore NCD issuance at a 6.97% coupon. The net consolidated profit after tax was ₹155.16 crore, down from ₹178.76 crore the previous year.
The board of directors of Embassy Office Parks Management Services (EOPMSPL), the manager of Embassy REIT, approved a distribution of ₹5,497.78 million/₹5.80 per unit for the quarter ending June 30, 2025. This distribution consists of ₹170.62 million/₹0.18 per unit in interest (after applicable taxes), ₹1,905.27 million/₹2.01 per unit in dividends, and ₹3,421.89 million/₹3.61 per unit for SPV level debt repayment.
During this quarter, the company leased 2 million sq ft across 25 deals in Q1 FY26, representing a 9% year-on-year increase. This included 1 million sq ft of new leases, 360,000 sq ft of renewals, and 665,000 sq ft of pre-leases. Strong pre-leasing activity was driven by Chennai, with over 500,000 sq ft pre-leased, including contracts with a leading global healthcare firm. There was over 90% occupancy across all Bengaluru properties (75% of gross asset value); out of 14 properties, 10 had occupancy rates above 90%, with 6 at full occupancy. GCCs contributed to 64% of rental income.
The company also entered into binding agreements for the slump sale of a 376,000 sq ft office space (across two blocks) at Embassy Manyata in Bengaluru, as part of a strategic capital recycling plan, to Viridis Office Park 3 for a cash consideration of ₹5,300 million.
Embassy REIT Appoints New CEO
The board accepted the resignation of Ritwik Bhattacharjee as the interim chief executive officer and key managerial personnel of EOPMSPL, effective July 31, 2025. He will remain as a senior advisor to Embassy REIT.
The board also appointed Amit Shetty as the new CEO, effective August 1, 2025. Shetty, currently the chief operating officer of the company, joined Embassy REIT in 2021 after a 14-year tenure at CBRE.
Bhattacharjee stated, “We’re pleased to report a robust start to FY26, with 2 million sq ft leased this quarter and rising momentum in Chennai. Our revenue grew by 13% YoY, and distributions increased by 4% YoY, showcasing the ongoing strength of our portfolio. We also raised ₹4,225 crore in debt at a blended coupon of 7.18% to capitalize on favorable rates and prepare the REIT for future growth opportunities.”
The board approved raising up to ₹4,000 crore in additional debt.
Embassy REIT received an invitation from Embassy Developments for a potential ~3.3 million sq ft commercial project in Whitefield, Bengaluru.
The current development pipeline includes 6.1 million sq ft in Bengaluru and Chennai, with around 60% already pre-leased.
