Embassy REIT earnings for the quarter ended September 2026 included a record ₹670 crore distribution and more than 1.5 million square feet of office leasing. The distribution of ₹7.07 per unit was 9% higher than a year earlier.

Key Takeaways

  • Global capability centres accounted for 85% of leasing demand during the quarter.
  • Revenue from operations rose 16% year on year, while net operating income increased 15%.

Embassy REIT earnings and distribution

Revenue from operations reached ₹1,303 crore in the second quarter of fiscal 2026–27, while net operating income was ₹1,069 crore. The quarterly distribution was the highest declared by the office real estate investment trust.

Gross asset value increased 16% year on year to approximately ₹74,000 crore, and net asset value rose 18% to ₹524.74 per unit. The increases were supported by higher market rents, portfolio additions and valuation assumptions.

Bengaluru pre-lease leads office activity

The quarter’s leasing included a 0.5 million-square-foot pre-lease of an entire building at Embassy TechVillage to a global engineering company. Embassy REIT said the rent was 15% above prevailing market rents.

The Embassy TechVillage office park is located on Bengaluru’s Outer Ring Road and serves occupiers across industries including technology, financial services, engineering and consulting.

Across the portfolio, new leases covered 0.9 million square feet at an average 9% premium to market rents. Leasing in Pune totaled 0.2 million square feet across three assets and contributed to a 300-basis-point improvement in occupancy there.

Occupancy, development and financing

Portfolio occupancy stood at 93% by value. Bengaluru, Chennai and Noida were each at 94%, while Mumbai was at 100%.

The REIT completed a 0.6 million-square-foot office block at Embassy Splendid TechZone in Chennai, fully committed to a US-based global capability centre. Its development pipeline stood at 5.6 million square feet across Bengaluru and Chennai.

Embassy REIT also acquired 8,048 square feet of fully leased retail space at FIFC in Mumbai’s Bandra-Kurla Complex. During the quarter, it raised ₹2,050 crore in debt at a blended interest rate of 7.14%.

Next milestone

The distribution record date is October 31, 2026, with payment scheduled on or before November 6.

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