Embassy Office Parks REIT has submitted its Annual Secretarial Compliance Report for the year ended March 31, 2026, to the National Stock Exchange of India Limited and BSE Limited. The report, prepared by Practicing Company Secretary Rupal D Jhaveri, confirms that the Manager of the REIT has complied with the provisions of SEBI (Real Estate Investment Trusts) Regulations, 2014, and other applicable regulations during the review period.

Settlement with SEBI

The report details one instance of regulatory action during the period. SEBI issued a Show Cause Notice dated May 30, 2025, alleging violations including delays in disclosure of the NFRA Order by 53 days, delays in disclosing the Manager's view on the 'fit and proper' status of its erstwhile CEO by 35 days, and delays in disclosing a SEBI letter dated October 8, 2024, by 11 days. The Manager filed a Settlement Application on June 13, 2025, without admitting or denying the findings. Pursuant to a notice of demand issued by SEBI on October 13, 2025, the Manager remitted a settlement amount of ₹18,39,825 to SEBI.

Actions on Previous Observations

The report outlines several corrective actions taken by the Manager in response to SEBI observations from previous years:

Compliance Status

The Practicing Company Secretary reported that the Manager has maintained proper records under the provisions of the examined regulations and circulars. The report confirms that no deviations from compliance requirements were noted during the review period, and the Manager has implemented corrective measures for all observations raised in previous reports. Action Taken Reports have been submitted to SEBI for all addressed matters.

The report was signed by Rupal Dhiren Jhaveri, FCS No. 5441, on April 27, 2026, in Mumbai.

Morgan Stanley has reaffirmed its positive outlook on Embassy Office Parks REIT by maintaining an Overweight rating with a target price of ₹470. The global investment bank's recommendation is backed by the REIT's strong operational performance and promising growth trajectory across multiple financial metrics.

Financial Performance and Growth Projections

The brokerage highlighted Embassy Office Parks REIT's impressive financial performance, particularly noting the strong Net Operating Income (NOI) growth of 15% year-on-year. The company's steady Distributable Per Unit (DPU) growth is projected at approximately 10% for FY26, demonstrating consistent returns for investors.

Asset Value and Occupancy Metrics

The REIT has demonstrated strong asset management capabilities with rising Gross Asset Value (GAV) increasing by 12% quarter-on-quarter. Occupancy levels remain healthy at approximately 90%, with management targeting an improvement to 92-93% in the near term.

Investment Attractiveness

Morgan Stanley's positive rating is further supported by the REIT's attractive valuation metrics and growth potential. The company currently trades at approximately 14% discount to Net Asset Value (NAV), presenting an attractive entry point for investors. Additionally, the substantial development pipeline of 6.2 million square feet provides significant growth opportunities for future expansion.

Market Outlook

Despite acknowledging higher interest costs as a potential headwind, Morgan Stanley believes the REIT's strong operational fundamentals and growth trajectory outweigh these concerns. The combination of steady income distribution growth, robust NOI performance, and strategic asset management positions Embassy Office Parks REIT favorably in the current market environment.