Embassy REIT Q2 Revenue Growth and NOI Rise
Embassy REIT showcases remarkable growth in its Q2 FY26 performance, with significant increases in revenue and net operating income (NOI).
– Revenue Growth: Achieved a 13% year-on-year increase in revenue, reaching ₹1,124 crore for the quarter ending September 30, 2025.
– NOI Performance: Net Operating Income rose 15% YoY to ₹927 crore during the same period.
– Occupancy Rates: Maintained a solid occupancy rate of 93%, with Bengaluru leading at 95%.
– Distribution: The Board declared a distribution of ₹617 crore, translating to ₹6.51 per unit, with a record date set for November 8, 2025.
Leasing Highlights
– Leasing Activity: Successfully leased 1.5 million square feet (msf) across 20 transactions, including:
– New leases: 1.0 msf
– Renewals: 0.4 msf
– Pre-leases in Chennai: 64,000 square feet
– Market Performance: Bengaluru accounted for over 85% of the leasing activity.
Financial Strength
– Gross Asset Value: Increased 8% YoY to ₹63,980 crore.
– Net Asset Value: Rose 7% to ₹445.91 per unit.
– Capital Raising Initiatives:
– First 10-year non-convertible debenture (NCD) issuance by a REIT, generating ₹2,000 crore from institutional investors.
– Additional ₹400 crore raised through commercial paper at a competitive rate of 6.44% per annum.
The continued strategic growth displayed in this quarter emphasizes Embassy REIT’s commitment to maintaining high occupancy and delivering value to stakeholders. The company remains focused on expanding its portfolio and investing in new development projects, reinforcing its position as India’s first publicly listed Real Estate Investment Trust and Asia’s largest office REIT by area.