Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’) announced the results 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, 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.
During FY2025, the company leased 6.6 million square feet (MSF) through 98 transactions. This includes 4.0 msf of new leases, 1.6 msf of renewals, and approximately 1 msf of pre-leased space. Global Capability Centers (GCCs) across various sectors contributed to around 60% of the total leasing activity for the year. The overall portfolio occupancy rate stands at 91% by value, with Bengaluru at 92%, Mumbai at a full 100%, and Chennai at 95%.
Revenue from Operations and Net Operating Income (NOI) grew 10% year-over-year, reaching record highs of Rs 4,039 crores and Rs 3,283 crores, respectively. The company distributed Rs 2,181 crores to unitholders, translating to Rs 23.01 per unit, an 8% increase from the previous year. Since listing, cumulative distributions have exceeded Rs 12,000 crores. Furthermore, it refinanced approximately Rs 6,300 crores in debt at an average interest rate of 7.98% while maintaining a robust balance sheet supported by dual AAA/Stable credit ratings.
The company delivered 2.5 msf of new development in Bengaluru and is currently advancing a 6.1 msf development pipeline in Bengaluru and Chennai, targeting an 18% yield on cost. It also completed the acquisition of a 5.0 msf premium business park in Chennai and is actively exploring further inorganic growth through Right of First Offer (ROFO) assets from its Embassy Sponsor and other third-party opportunities. The hotel portfolio also posted strong performance, with occupancy rising to 63% (up 7% YoY), a 12% increase in Average Daily Rate (ADR), and a 25% growth in annual EBITDA.
