Embassy REIT Reports 15% NOI Growth on 6.4 MSF FY2026 Leasing, Guides to Double-Digit FY2027 Growth

Embassy REIT Closes FY2026 with Record Leasing and NOI Expansion

Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602), India's first listed REIT and the largest office REIT in Asia by area, reported results for the quarter and full year ended March 31, 2026. The REIT leased 6.4 million sq ft in FY2026 across 86 deals, including 4 million sq ft of new leasing, 1.5 million sq ft of renewals, and 0.9 million sq ft of pre-leases.

Growth Metrics and Portfolio Expansion

NOI grew by 15%, DPU by 10%, and NAV by 16% year on year. The REIT expanded its operational portfolio to 43.5 million sq ft, with a record delivery of 3.3 million sq ft of new office buildings, as well as an acquisition of a third-party marquee building within its core EGL asset.

On this expanded base, occupancy increased to 94% by value, leasing at an impressive 17% higher leasing spreads. Global Capability Centers (GCCs) formed 59% of the 6.4 million sq ft leasing activity across 86 deals.

Strategic Developments and Capital Management

The REIT delivered a record 3.3 msf of new office space, scaled redevelopment and strengthened its balance sheet through efficient capital raises, including pioneering the first-ever 10-year NCD issuance in India's REIT market. It successfully raised ₹11,200 crore of debt, reducing in-place debt cost by 65 basis points to 7.25%.

Hotel and Hospitality Progress

The REIT is nearing completion of construction of hotels at Embassy Tech Village and has received the occupancy certificate for the buildings. It is planning to launch the Hilton Garden Inn in July 2026, and then the Hilton five-star in March 2027. During Q4, it also launched construction of the 116-key Spark by Hilton Hotel in Embassy Tech Zone in Pune, expected to deliver by December 2028.

FY2027 Guidance and Unitholder Returns

The REIT has guided to double-digit distribution growth for FY27, indicating continued business momentum. The Board declared a distribution of ₹616 crores or ₹6.50 per unit for Q4 FY2026. With this, the cumulative distribution for FY2026 totals ₹2,396 crores or ₹25.28 per unit.

Portfolio Composition and Market Presence

Embassy REIT owns and operates a portfolio of over 50 million square feet of office spaces across India's key gateway markets, including Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai. The portfolio comprises 14 premium office ecosystems, including large, integrated office parks and city-centre office assets, and is home to 280 leading global and domestic corporations.

FY2026 leasing of 6.4 msf was driven by strong GCC-led demand, with Chennai emerging as a key growth driver.