Embassy Office Parks REIT reported a 12 per cent rise in both net operating income and revenue in Q2 of FY25, driven by 2.1 million square feet of leases in the quarter, prompting the REIT to raise its FY25 leasing guidance to 6.5 msf from 5.6 msf earlier.

The REIT reported net operating income of ₹805 crore on revenue of ₹997 crore. Its quarterly distribution rose 5 per cent on year and 4 per cent sequentially to ₹5.83 per unit.

It ended the quarter with an occupancy level of 90 per cent by value and 87 per cent in terms of area, a 200 basis points rise. Over half of its properties across Bengaluru, Mumbai and Chennai saw an average occupancy of around 95 per cent.

The leasing guidance had been increased in view of the record leasing seen in the quarter ands the “robust pipeline for the rest of the year,” said CEO Arvind Maiya. In H1 of FY25 it has leased 4 msf.

Of the total area leased across 24 deals, new leases accounted for 1.3 msf and 400,000 square feet were renewals at 71 per cent rent revisions, it said. Around half of its leasing was due to Global Capability Centres, led by Bengaluru that accounted for 77 per cent of the quarterly leasing activity. During the quarter it also delivered 600,000 square feet office block at Embassy Manyata in Bengaluru, fully pre-leased by ANZ.

The REIT has an active development pipeline of 8 msf with an expected yield on cost of 19 per cent. All the projects are located in Bengaluru and Chennai. In the new developments 57 per cent of the portfolio is already pre-leased.

Its hotel portfolio saw a 14 per cent annual rise in occupancy at 67 per cent.

The REIT’s portfolio sees 14 per cent area expansion with 5.2 msf of deliveries scheduled by FY26-end. Of this, over 70 per cent is -pre-leased to marque tenants.

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