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Embassy REIT Grows Distributions by 8% in FY2025 and Projects Double-Digit Distribution Growth in FY2026

Embassy REIT Grows Distributions by 8% in FY2025 and Projects Double-Digit Distribution Growth in FY2026

Source: Businesswire India

Business Wire India
  • Delivers distributions of Rs. 2,181 crores (Rs. 23.01 per unit), exceeds mid-point distribution guidance by 1.1%
  • Leases 6.6 msf across 98 deals; exceeds full year initial leasing guidance of 5.4 msf by 22% 
  • Grows Revenue and Net Operating Income by 10% YoY to annual record of Rs. 4,039 crores and Rs. 3,283 crores, respectively
  • Provides FY2026 guidance with distributions in the range of Rs. 24.50 to Rs. 26.00 per unit, implying a 10% YoY growth in distributions at midpoint and occupancy in the range of 93%-94% by value
  • Evaluating potential acquisition opportunities through both the Embassy Sponsor and third parties
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Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT and the largest office REIT in Asia by area, reported results today for the fourth quarter and full year ended March 31, 2025. 
 
Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said,
 
“We’re delighted to report another excellent year for Embassy REIT as we mark six years since our listing in April 2019. In FY2025, we leased 6.6 msf, delivered 2.5 msf of new development and acquired a 5.0 msf high-quality asset. Notably, we increased distributions by 8% and are pleased to guide to double-digit distribution growth in FY2026. Our business is in excellent shape and our world-class office portfolio continues to see strong demand from leading companies across the globe.”
 
The Board of Directors of Embassy Office Parks Management Services Private Limited (‘EOPMSPL’), Manager to Embassy REIT, at its Board Meeting held earlier today, declared a distribution of Rs. 538 crores or Rs. 5.68 per unit for Q4 FY2025. With this, the cumulative distribution for FY2025 totals Rs. 2,181 crores or Rs. 23.01 per unit. The record date for the Q4 FY2025 distribution is May 3, 2025, and the distribution will be paid on or before May 9, 2025. 
 
Business Highlights
 
  • Leased 6.6 msf across 98 deals in FY2025 including 4.0 msf of new leases, 1.6 msf of renewals and ~1 msf of pre-leases
  • Global Capability Centers (GCCs) across sectors accounted for ~60% of the annual leasing activity
  • Portfolio occupancy stands at 91% by value* —Bengaluru at 92%, Mumbai at 100%, and Chennai at 95%

Financial Highlights
 
  • Grew Revenue from Operations and Net Operating Income (NOI) by 10% YoY to a record Rs. 4,039 crores and Rs. 3,283 crores, respectively
  • Delivered Distributions of Rs. 2,181 crores or Rs. 23.01 per unit, up 8% YoY for FY2025; Cumulative distributions of over Rs. 12,000 crores since listing
  • Refinanced ~Rs. 6,300 crores debt at an average rate of 7.98%; Continue to maintain a strong balance sheet with dual AAA/Stable credit ratings 

Operational & Growth Highlights
 
  • Delivered 2.5 msf new development in Bengaluru; Current development pipeline of 6.1 msf in Bengaluru & Chennai at 18% yield on cost
  • Acquired 5.0 msf premium business park in Chennai; Actively evaluating inorganic growth opportunities including ROFO assets from the Embassy Sponsor as well as other assets from third parties
  • Hotel portfolio performed strongly with 63% occupancy up 7% YoY, 12% ADR growth and growth in annual EBITDA by 25% 
 
Investor Materials and Quarterly Investor Call Details

Embassy REIT has released a package of information on the quarterly results and performance, that includes (i) condensed standalone and condensed consolidated financial statements for the year ended March 31, 2025 (ii) an earnings presentation covering Q4 FY2025 results and FY2025 results, and (iii) supplemental operating and financial data book that is in-line with leading reporting practices across global REITs. All these materials are available in the Investors section of our website at www.embassyofficeparks.com.
 
Embassy REIT will host a conference call on April 29, 2025 at 18:30 hours Indian Standard Time to discuss the Q4 FY2025 and full year FY2025 results. A replay of the call will be available in the Investors section of our website at www.embassyofficeparks.com.

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