Embassy Office Parks REIT has filed its Annual Report for the financial year ended March 31, 2026, with the National Stock Exchange of India Limited and BSE Limited, pursuant to Regulation 23 of the SEBI (Real Estate Investment Trusts) Regulations, 2014. The report was approved by the Board of Directors of Embassy Office Parks Management Services Private Limited, the Manager to the REIT, through a resolution passed by circulation.

FY2026 Financial Highlights

Embassy REIT delivered strong double-digit growth across all key financial metrics for FY2026. The following table summarises the REIT's consolidated financial performance:

Revenue growth was primarily driven by new lease-up at high re-leasing spreads, contracted rent escalations, and delivery of new buildings. Commercial office NOI margins stood at 86% and hotel margins at approximately 51%.

Leasing and Operational Performance

The REIT leased 6.4 msf across 86 deals during FY2026 at 17% higher blended leasing spreads. The leasing activity comprised:

• 4.0 msf of new leases at 24% re-leasing spreads
• 1.5 msf of renewals at 7% renewal spreads
• 0.9 msf of pre-commitments across Bengaluru and Chennai

Portfolio occupancy improved by 300 basis points to 90% by area and 94% by value during FY2026. Global Capability Centres (GCCs) accounted for approximately 60% of annual leasing activity, with demand led by Technology, Healthcare, and BFSI sectors. The REIT now hosts 102 GCCs within its occupier roster of 280 corporates, contributing over 67% of annual rentals.

Chennai emerged as a significant growth driver, with one of the city's largest deals — a full 0.65 msf block pre-leased to Cognizant for a GCC tenant at Embassy Splendid TechZone.

Portfolio and Development Activity

Embassy REIT delivered a record 3.3 msf of new office space during FY2026 across Bengaluru and Chennai, including:

The total commercial office development pipeline stands at 6.2 msf with a planned capital outlay of ₹35 bn, expected to add approximately ₹6 bn in stabilised NOI by FY2030. The hospitality portfolio is also expanding, with 518-key dual-branded Hilton hotels at Embassy TechVillage scheduled for phased launch from July 2026 to March 2027.

Inorganic Growth and Capital Recycling

During FY2026, Embassy REIT completed the acquisition of Pinehurst, a 100% leased 0.3 msf commercial office building within Embassy GolfLinks in Bengaluru, for an enterprise value of ₹8,528 mn at a forward NOI yield of approximately 7.90%. The acquisition was funded through the proceeds of the REIT's first-ever capital recycling transaction — the divestment of two strata-owned blocks at Embassy Manyata aggregating approximately 376,000 sq. ft. for a total consideration of ₹5,300 mn, representing a 2.2% premium to the average of two independent valuations.

Debt Management and Balance Sheet

Embassy REIT raised ₹112 bn in debt during FY2026, reducing its in-place cost of debt by approximately 65 basis points to around 7.25%. Key capital market transactions included:

The Series XV and XVI NCDs represent the first 10-year NCD issuances in India's REIT market. The REIT's net debt book totals ₹214 bn, implying a 30% Net Debt to GAV leverage ratio. Fixed-rate debt now accounts for 60% of the total debt book, with the average fixed debt maturity extended to 45 months. The REIT holds available debt headroom of ₹129 bn and cash and cash equivalents of ₹9,696.66 mn as at March 31, 2026.

Portfolio Valuation

As per the independent valuation conducted by Ms. L. Anuradha, MRICS, in conjunction with value assessment services by Cushman & Wakefield, the portfolio Gross Asset Value as at March 31, 2026 stood at ₹705,400 mn, up 15% year-on-year. The consolidated NAV was ₹465,999 mn, translating to a NAV per unit of ₹491.62, up 16% year-on-year.

Unitholder Returns and Market Performance

Embassy REIT delivered approximately 22% total returns to its 1,35,000+ unitholders during FY2026, comprising 15% price appreciation and a distribution yield. The unit price closed at ₹420.29 on NSE as at March 31, 2026. The REIT's unitholder base has grown 34x from approximately 4,000 at the time of its IPO in April 2019 to over 1,35,000 today. Cumulative distributions since listing have crossed ₹144 bn.

FY2027 Guidance

For FY2027, Embassy REIT has guided for NOI in the range of ₹41,500 mn to ₹43,500 mn and distributions in the range of ₹27.00 to ₹28.60 per unit, implying approximately 13% year-on-year NOI growth and approximately 10% year-on-year distribution growth at the midpoint of the guidance range. Key growth drivers include occupancy ramp-up, contracted rent escalations on 8.9 msf of leases, mark-to-market opportunities on expiring leases, new office deliveries, and refinancing of approximately ₹52 bn of debt maturing in FY2027.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE041025011/5a6f01cc4bda4974.pdf

Embassy Office Parks REIT has released its Environment, Social and Governance (ESG) Report and Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026. The report details the company's sustainability performance across its 52.5 million square feet portfolio spanning 14 properties in Bengaluru, Mumbai, Pune, Noida, and Chennai, with an occupancy rate of 90%. The report is aligned with the Global Reporting Initiative (GRI) Standards (2021) and the Task Force on Climate-related Financial Disclosures (TCFD), and has been independently assured by the British Standards Institution (BSI).

Financial and Operational Performance

Embassy REIT reported strong financial results for FY26, with revenue from operations rising 13% year-on-year. Net operating income and EBITDA also recorded notable growth. The following table summarises the key financial metrics:

The portfolio comprises 43.5 msf of completed area, 6.2 msf under construction, and 2.8 msf of future development. The company serves 280 blue-chip occupiers, with 47% of gross rentals from Fortune 500 companies. Technology (29%) and financial services (26%) sectors account for the largest share of occupiers by gross rentals.

Environmental Stewardship

Renewable energy accounted for 69% of total energy consumption in FY26, up from 55% in the previous year, driven by increased wheeled renewable power and rooftop solar generation. This progress contributed to a 55% reduction in Scope 1 and Scope 2 emissions compared to the FY20 baseline. The company targets 80% renewable energy usage across operations by 2030. Key environmental metrics are summarised below:

Rooftop solar installations generated 17.33 million kWh of clean energy in FY26, delivering monetary savings of approximately ₹140 million. Total investment in solar installations stood at approximately ₹650 million, with an estimated payback period of 2–4 years. Solar power capacity increased to 19.76 MW from 17.26 MW in the preceding year. The company has installed 1,920 EV charging stations across its properties, comprising 1,836 industrial sockets, 47 slow charging stations, and 37 fast charging stations.

Water stewardship initiatives include a zero liquid discharge mechanism across all projects, supported by sewage treatment plants with a combined capacity of 21,775 KLD, 207 recharge pits with a combined capacity of 1,341 KLD, and rainwater collection tanks. Total waste generated across the portfolio was 9,004 tons in FY26, of which 189 tons was hazardous and 8,815 tons was non-hazardous. Of total waste disposed, 7,276 tons were diverted through recycling and reuse, while 86 tons were directed to disposal via incineration, landfilling, or other methods.

Green Buildings and Certifications

Embassy REIT's entire operational portfolio of 13 assets, totalling 30,546,427 sq ft, holds USGBC LEED Platinum certification under LEED O&M V4.1. In addition, 35 buildings are certified LEED Net Zero Water, and two buildings — Carnation Wells Fargo at Embassy TechVillage and Sapphire Wells Fargo at Embassy Splendid TechZone — have received LEED Net Zero Energy certification. For new developments, 4.6 msf has received LEED Gold pre-certification and 1.9 msf has received LEED Certification. In FY26, 43% of the portfolio area achieved energy ratings across Bengaluru, Mumbai, Pune, and Noida parks, against a target of 75% by 2030. Green leases accounted for 93% of new leases signed in FY26.

The company received a GRESB score of 4.1 in 2025 (95th percentile), a 5-star rating from the British Safety Council for 100% of its operational portfolio, and an S&P Global ESG score of 68/100 in 2025. Embassy REIT is also included in the FTSE4Good Index and the Dow Jones Sustainability Emerging Markets Index.

Social Impact and Workforce

The company spent ₹133 million on CSR projects in FY26, positively impacting over 15,708 students and providing 15,253 free and subsidized treatments through community health initiatives. CSR programmes covered education, preventive healthcare, sustainable infrastructure, and environment, implemented through NGO partners including Colours of Life, Lila Poonawalla Foundation, and The Akanksha Foundation.

The workforce comprised 119 permanent employees and 6,358 third-party contract workers. Women represented 25% of all management roles across junior, middle, and senior levels. In FY26, employees availed of 1,558 hours of training across 698 topics. The company conducted 3,974 in-house EHS and well-being training sessions covering 128,411 training hours for third-party contract workers. Zero fatalities and zero lost-time injuries were reported across the standing investments portfolio for employees and third-party workers.

The Gallup Employee Engagement Survey recorded a 96% participation rate and an overall engagement score of 4.14/5 in FY26. The Customer Satisfaction Survey received responses from 271 occupiers, representing a 92% participation rate.

Governance and Sustainable Finance

Embassy REIT's governance structure includes a Board-level ESG Committee chaired by the CEO, supported by an ESG Working Group. The Board comprises 8 directors, including 6 independent directors, with 12.5% women representation. The company voluntarily published its fifth BRSR disclosure in FY26, aligned with SEBI guidelines and BRSR Core requirements.

The sustainable finance portfolio stands at ₹26 billion, accounting for approximately 12% of gross debt. During FY26, Embassy REIT mobilised ₹680 crore through green and sustainability-aligned funding instruments. The company targets net zero carbon operations by 2040, with a comprehensive 5-year ESG roadmap extending to FY2030 covering renewable energy, emissions reduction, water management, green buildings, and supply chain sustainability.

Key significant developments during FY26 include the appointment of Mr. Amit Shetty as Chief Executive Officer with effect from August 1, 2025, the completion of the acquisition of Eleanor Realty Holdings India Private Limited (owner of the 'Pinehurst' building at Embassy Golf Links Business Park) for an enterprise value of ₹8,520 million, and the slump sale of approximately 376,000 sq ft of office space at Embassy Manyata for cash consideration of ₹5,300 million.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE041025011/56ff9f99e0964fde.pdf