India’s first listed REIT, Embassy Office Parks, had a great third quarter of FY2026. Embassy REIT Q3 FY26 showcases a record revenue, continued leasing momentum, and a higher quarterly distribution. At the same time, it expanded its acquisition and development funnel.
In Q3 FY 2026, Embassy REIT announced a distribution of INR 613 crore (INR 6.47 per unit), 10% more than in Q3 FY25. The payment is due by 18 February 2026, and the distribution record date is 11 February 2026.
Embassy REIT Q3 FY26 Results: Record Quarter on Operating Income
Embassy REIT had its best quarter ever, with revenue from operations up 17% from the same time last year to INR 1,193 crore. Net Operating Income (NOI) rose 19% year over year to INR 985 crore, and EBITDA also rose 19% year over year. This meant that property-level profitability was even higher.
For Embassy REIT 9M FY26, momentum stayed the same:
- Revenue: INR 3,378 crore (+14% from last year)
- NOI: INR 2,784 crore, up 16% from last year
- Distributions: INR 1,780 crore, up 8% from last year
Amit Shetty, the CEO, said that the quarter was a continuation of strong leasing and execution, with a sharper focus on “income-accretive” growth opportunities.
Leasing Engine Stays Hot: 1.1 msf in Q3, 4.6 msf YTD
Leasing was still the main operational driver. In Embassy REIT Q3 FY26, the trust leased 1.1 million square feet in 22 deals. This brought the total amount leased so far this year to 4.6 million square feet.
Key Leasing:
- 0.8 msf of new leases brought in about 17% more in re-leasing spreads.
- New deals were made at about 5% more than what the market rent was thought to be.
- More than two-thirds of all leasing in Q3 came from Bengaluru.
- Portfolio occupancy was about 90% by area and about 94% by value.
The REIT also talked about how rents were going up in the market: portfolio market rents went up about 9% from the previous year, and the presentation showed that mark-to-market (MTM) potential was about 11%, which means that there is built-in upside as leases end.
Embassy REIT Q3 FY26: Growth strategy
Embassy REIT is pairing organic growth with external expansion:
1) Looking into buying “Embassy Zenith” (0.4 msf, Bengaluru CBD): The REIT got an “invitation to offer” for Embassy Zenith, a 0.4 msf office tower in central Bengaluru that was said to be fully leased to a big global tech company. The asset is not yet a final deal, but it shows that there is interest in buying stabilised, high-quality properties.
2) Pinehurst acquisition at Embassy GolfLinks (0.3 msf): The REIT announced that it had reached an agreement to buy Pinehurst, a 0.3 msf building in Embassy GolfLinks in Bengaluru. The metrics that were made public include a total enterprise value of about INR 852 crore and an NOI yield of about 7.9%.
3) Capital recycling through divestment: It sold two strata-owned blocks at Embassy Manyata for INR 530 crore, which was a total of 0.4 msf. Management called this “portfolio optimization” and “capital recycling.”
4) The development pipeline is still big and focused on yield: Embassy REIT has a total development pipeline of 7.6 msf, and management says the overall stabilized NOI yield on the pipeline is about 16%. In the last three months, it:
- Gave 0.4 msf to Embassy Splendid TechZone in Chennai, which is 100% leased to a global healthcare company.
- Embassy Manyata is getting a third redevelopment, which will be 0.8 msf and is expected to be finished by June 2029, with a yield on cost of about 23% (forward estimate).
Chennai is becoming a key growth area, with management noting strong demand from global tenants and a large share of the development pipeline linked to the market.
Hotels: Steady Improvement Supports Mixed-Use Ecosystem
Beyond office rentals, hospitality performance remained resilient:
- Hotel segment NOI grew ~13% YoY in Q3
- Occupancy improved to ~60%, with ADR up ~11% YoY
- A proposed 116-key hotel at Embassy TechZone (Pune) was positioned as an ecosystem-enhancing addition for occupiers
Embassy REIT Q3 FY26: Guidance Reaffirmed
Management reaffirmed FY26 expectations, signaling confidence that operating momentum can translate into full-year distribution growth:
- NOI guidance: INR 3,589–3,811 crore
- DPU guidance: INR 24.50–26.00
- Occupancy expected to remain broadly in the 90–91% range (by area)
In short, Embassy REIT Q3 FY26 delivered record revenue and NOI. This was driven by strong leasing activity and higher distributions, both of which are good for cash flows in the near term. Rising market rents and price-to-market upside make the DPU more visible in the medium term. The move toward a “build + buy” playbook (the GolfLinks acquisition and the Zenith evaluation) offers more growth options and the chance to add to NAV. Execution risk, delivery timelines, and leasing conversion across markets are still the most important swing factors.
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