Embassy Office Parks REIT (EMBASSY) Q4 24/25 earnings summary

Executive summary

• FY 2025 distributions grew 8% year-on-year to INR 2,181 crore (INR 23.01 per unit), surpassing guidance midpoint by 1.1%.

• 6.6 million sq ft leased in FY 2025, exceeding guidance by 22%, with 98 deals signed and 1.6 million sq ft in Q4.

• Portfolio occupancy at 87% by area and 91% by value; Mumbai at 100%, Bangalore at 92%, Chennai at 95%.

• Hospitality segment EBITDA up 25% year-on-year, with occupancy up 700 bps to 63% and RevPAR up 26%.

• Acquired a 5.0 msf premium business park in Chennai and delivered 2.5 msf of new development in Bangalore.

Financial highlights

• Highest-ever annual revenue from operations at INR 4,039 crore and NOI of INR 3,283 crore, both up 10% year-on-year.

• FY 2025 distributions totaled INR 23.01 per unit, up 8% year-on-year and 1.1% above midpoint guidance.

• Portfolio gross asset value rose 10% year-on-year to INR 61,200 crore; NAV increased 5% to INR 423.22 per unit.

• Net debt at INR 19,650 crore, leverage ratio at 32%, and average interest rate at 7.9%.

• Q4 FY2025 revenue grew 15% year-on-year to INR 10,858 million; NOI up 17% to INR 8,924 million.

Outlook and guidance

• FY 2026 NOI expected between INR 3,589 crore and INR 3,811 crore; distributions projected at INR 24.5–26 per unit.

• Midpoint guidance implies 13% NOI growth and 10% DPU growth year-on-year.

• Portfolio occupancy expected to reach 90%-91% by area (93%-94% excluding Quadron) and 93–94% by value by March 2026.

• Hotel NOI forecasted to rise 9% year-on-year; interest costs expected to increase 10%-12%.

• FY2026 guidance excludes impact of any fresh unit issuance and is subject to macroeconomic risks.