Embassy Office Parks REIT, the largest office REIT in India, has reported a record quarterly revenue of ₹1,022 crores and net operating income of ₹829 crores for Q3 FY2025, representing a 9 per cent increase year-over-year. The company has also announced distributions of ₹559 crores (₹5.90 per unit), marking a 13 per cent increase from the previous year.
In Q3, the REIT leased 1.1 million square feet across 21 deals, with Global Capability Centers (GCCs) making up around 70 per cent of the leasing activity. The portfolio occupancy rate stood at 90 per cent by value, with key markets like Bengaluru, Mumbai, and Chennai achieving occupancy levels exceeding 90 per cent.
A notable achievement for Embassy REIT in Q3 was the delivery of a 0.6 million square feet office block to a global banking major at Embassy TechVillage in Bengaluru. The company currently has a development pipeline of 7.4 million square feet in Bengaluru and Chennai, with an expected yield on cost of 19 per cent.
Interim CEO Ritwik Bhattacharjee highlighted the strong demand for office space in gateway markets, noting record absorption in India during calendar year 2024. The company also successfully raised ₹1,000 crores of debt at approximately 7.73 per cent, resulting in around 70 basis points in interest cost savings.
The record date for Q3 FY2025 distribution is scheduled for February 1, 2025, with payments set to be made by February 7, 2025.
