Embassy Office Parks REIT reported a 12% increase in both net operating income and revenue for the second quarter of 2025, driven by 2.1 million square feet of leases in the quarter, and the REIT reported 2025 lease guidance increased from 5.6 msf to 6.5 msf. .
The REIT reported a net operating profit of Rs 850 crore on revenue of Rs 970 crore. Quarterly distributions increased 5% year-on-year and 4% sequentially to ₹5.83 per unit.
The quarter ended with occupancy rates of 90% by value and 87% by square footage, an increase of 200 basis points. More than half of the company’s properties across Bangalore, Mumbai and Chennai had an average occupancy rate of around 95%.
CEO Arvind Maiya said leasing guidance had been increased given the record leasing seen in the quarter and a “robust pipeline for the rest of the year.” In the first half of 2025, we leased 4 msf.
Of the total area leased across the 24 transactions, new leases accounted for 1.3msf and 400,000 square feet were renewed at 71% rent revisions. About half of the leases were from the Bangalore-led Global Capability Center, which accounted for 77 percent of leasing activity in the quarter. During the quarter, ANZ also delivered a 600,000 sq ft office block, fully pre-leased by ANZ, at the Manyata Embassy in Bangalore.
The REIT has an active development pipeline of 8 msf and an expected yield on cost of 19%. All projects are located in Bangalore and Chennai. In new developments, 57% of the portfolio is already pre-leased.
The company’s hotel portfolio saw occupancy increase by 14% over the year to 67%.
The REIT’s portfolio has grown by 14% in area and is scheduled to deliver 5.2 msf by the end of FY26. More than 70% of this is pre-leased to branded tenants.
