Embassy REIT leases 1.5 million sq ft in Q2 as GCCs drive demand; distribution hits record Rs 670 crore

Mumbai: Embassy Office Parks REIT leased over 1.5 million sq ft of office space in the second quarter of the financial year 2026-27, including a 0.5 million sq ft pre-lease of an entire building in Bengaluru, as demand from global capability centres (GCCs) supported leasing activity.

The office REIT declared its highest-ever quarterly distribution of Rs 670 crore, or Rs 7.07 per unit, for the quarter ended September, marking a 9% increase year-on-year.

GCCs accounted for 85% of the REIT’s leasing demand during the quarter, while new leases covering 0.9 million sq ft were signed at an average 9% premium to market rents.


The pre-leased building at Embassy TechVillage in Bengaluru has been taken up by a global engineering company at a 15% premium to prevailing market rents, the REIT said in its earnings release.

Embassy REIT leased 0.2 million sq ft across three assets in Pune, accounting for around 25% of new leasing during the quarter. The activity contributed to a 300-basis-point improvement in occupancy in the city. Portfolio occupancy stood at 93% by value, with Bengaluru, Chennai and Noida at 94% and Mumbai at 100%.

Revenue from operations rose 16% year-on-year to Rs 1,303 crore, while net operating income (NOI) increased 15% to Rs 1,069 crore.

Gross asset value grew 16% year-on-year to approximately Rs 74,000 crore, while net asset value increased 18% to Rs 524.74 per unit, supported by higher market rents, additions to the portfolio and valuation assumptions.

Embassy REIT also acquired 8,048 sq ft of fully leased retail space at FIFC in Mumbai’s Bandra-Kurla Complex, consolidating its ownership in the commercial property.

During the quarter, the REIT raised Rs 2,050 crore in debt at a blended interest rate of 7.14%. This included Rs 1,000 crore in financing under the Reserve Bank of India’s new lending framework, described by the company as the first bank financing to an Indian REIT at the trust level under the framework.

The REIT also completed a 0.6 million sq ft office block at Embassy Splendid TechZone in Chennai, fully committed to a leading US-based GCC. Its development pipeline stood at 5.6 million sq ft across Bengaluru and Chennai.

Hotel revenue increased 22% year-on-year during the quarter, while average daily rates rose 10%. The newly opened Hilton Garden Inn at Embassy TechVillage achieved operating cash break-even within its first quarter of operations.

The distribution record date is October 31, 2026, with payment scheduled on or before November 6.