Embassy Office Parks REIT has reported strong financial and operational performance for the financial year ending March 2026, with double-digit growth across key metrics and an optimistic outlook for the year ahead.
The company said it leased 6.4 million square feet (msf) of office space during FY2026 across 86 deals, achieving leasing spreads that were 17% higher than previous agreements. This was supported by continued demand from global capability centres (GCCs), particularly in sectors such as technology, healthcare and banking.
Revenue from operations rose 13% year-on-year to ₹4,582 crore, while net operating income increased by 15% to ₹3,760 crore. Distributions to unitholders also grew by 10% to ₹2,396 crore, equivalent to ₹25.28 per unit.
A significant portion of leasing activity came from Chennai, which emerged as a key growth market, including one of the city’s largest office deals involving a US-based GCC. Overall portfolio occupancy improved to 94%, reflecting sustained demand for high-quality office assets.
The REIT delivered a record 3.3 msf of new office developments during the year, primarily in Bengaluru and Chennai, and continued to expand its pipeline. It also raised ₹11,200 crore through various financing initiatives, including a landmark 10-year non-convertible debenture issuance, helping reduce borrowing costs.
Portfolio valuation strengthened, with gross asset value rising 15% to ₹70,540 crore and net asset value increasing 16% to ₹491.62 per unit.
Looking ahead, the company expects another year of double-digit growth in FY2027. It has guided for distributions between ₹27.00 and ₹28.60 per unit and anticipates occupancy levels of 95% to 96%.
In addition, Embassy REIT announced plans to develop a 518-key dual-branded Hilton hotel at Embassy TechVillage in Bengaluru, with phased openings scheduled between July 2026 and March 2027.
