Embassy REIT posts record Q3 revenue, 13% jump in distributions
Embassy Office Parks REIT, India’s largest office REIT, reported record quarterly revenue of ₹1,022 crores and net operating income of ₹829 crores for Q3 FY2025, both up 9 per cent year-over-year. The company announced distributions of ₹559 crores (₹5.90 per unit), marking a 13 per cent increase from the previous year.
The REIT leased 1.1 million square feet across 21 deals in Q3, with Global Capability Centers (GCCs) accounting for approximately 70 per cent of the leasing activity. Portfolio occupancy stood at 90 per cent by value, with key markets Bengaluru, Mumbai, and Chennai achieving occupancy levels exceeding 90 per cent.
In a significant development, Embassy REIT delivered a 0.6 million square feet office block to a global banking major at Embassy TechVillage in Bengaluru. The company maintains a development pipeline of 7.4 million square feet in Bengaluru and Chennai, expecting a 19 per cent yield on cost.
Interim CEO Ritwik Bhattacharjee noted strong demand for office space in gateway markets, citing record absorption in India during calendar year 2024. The company successfully raised ₹1,000 crores of debt at approximately 7.73 per cent, securing about 70 basis points in interest cost savings.
The record date for Q3 FY2025 distribution is set for February 1, 2025, with payments to be made by February 7, 2025.
