India’s largest office Real Estate Investment Trust (REIT), Embassy Office Parks, posted a robust performance for the first quarter of FY26, marked by record leasing activity and strong growth in revenue and net operating income (NOI).
The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, declared a distribution of ₹550 crores or ₹5.80 per unit for Q1 FY2026. The record date for the Q1 FY2026 distribution is August 05, 2025, and the distribution will be paid on or before August 12, 2025.
Chennai leads the momentum, resulting in the highest-ever Q1 leasing
The company leased 2.0 million square feet (msf) across 25 deals before the quarter ended on June 30, 2025. This feat marks the company’s highest-ever Q1 leasing with the Chennai market contributing significantly through strong pre-leasing demand. Of the total leased area, nearly 1.0 msf comprised new leases, 360,000 sf were renewals, and 665,000 sf were pre-leases. Chennai alone accounted for over 500,000 sf of pre-leased space, including deals with a leading global healthcare company.
Revenue, income and distribution show growth
Revenue from operations rose 13% year-on-year to ₹1,060 crore in the June quarter, while net operating income (NOI) saw a 15% uptick to ₹872 crore. Embassy REIT declared a Q1 distribution of ₹550 crore, translating to ₹5.80 per unit—an increase of 4% over the same period last year.
The REIT also raised ₹4,225 crore in debt during the quarter at a blended coupon rate of 7.18%. This includes ₹750 crore through non-convertible debentures (NCDs) at a 6.97% coupon, marking the lowest borrowing rate secured by the trust in the past four years.
As part of its capital recycling strategy, the REIT signed binding documents to sell approximately 376,000 square feet of strata-owned space at Embassy Manyata in Bengaluru. It also received a proposal to evaluate a 3.3 msf commercial development project in Whitefield, Bengaluru, which is currently under review. Embassy REIT’s ongoing development pipeline now stands at 6.1 msf across Bengaluru and Chennai, with nearly 60% of the space already pre-leased—signalling strong forward demand.
Embassy REIT is India’s first publicly listed Real Estate Investment Trust. Embassy REIT owns and operates a 51.2 million square feet (“msf”) portfolio of ten infrastructure-like office parks and four city‑centre office buildings in India’s best-performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (“NCR”) and Chennai.
Embassy REIT’s portfolio comprises 40.4 msf of completed operating area and is home to 274 of the world’s leading companies. The company’s stock price (NSE: EMBASSY / BSE: 542602) as of today stands at Rs. 389.25. On the corporate side, the Embassy REIT board of directors appointed Amit Shetty to succeed Ritwik Bhattacharjee as the Chief Executive Officer (CEO). The transition took effect on August 1. Ritwik Bhattacharjee now serves as a senior advisor to the REIT.