Embassy Office Parks REIT · NSE:EMBASSY.RR
Embassy Office Parks REIT — Q4 FY2025 Earnings Presentation
53 slides from Embassy Office Parks REIT's earnings presentation, Apr 29, 2025
Slide 1: Embassy Office Parks REIT FY2025 Earnings Materials
Embassy Office Parks REIT FY2025 Earnings Materials April 29, 2025 1
Slide 2: Press Release
Q4 FY2025 Earnings Materials Press Release Embassy REIT Grows Distributions by 8% in FY2025 and Projects Double-Digit Distribution Growth in FY2026 • Delivers distributions of ₹2,181 crores (₹23.01 per unit), exceeds mid-point distribution guidance by 1.1% • Leases 6.6 msf across 98 deals; exceeds f
Slide 3: Press Release (Cont'd)
Q4 FY2025 Earnings Materials Press Release (Cont’d) Financial Highlights • Grew Revenue from Operations and Net Operating Income (NOI) by 10% YoY to a record ₹4,039 crores and ₹3,283 crores, respectively • Delivered Distributions of ₹2,181 crores or ₹23.01 per unit, up 8% YoY for FY2025; Cumulative
Slide 4: Table of Contents
Q4 FY2025 Earnings Materials Table of Contents I. 6 Year Highlights 5 II. Key Highlights 7 III. Looking Ahead 17 IV. Financial Updates 27 V. Market Outlook 35 VI. ESG & Total Business Ecosystem 39 VII. Appendix 44 4
Slide 5: I. Year Highlights
Q2 FY2025 Earnings Materials I. 6 Year Highlights Central Garden, Embassy TechVillage, Bangalore
Slide 6: Embassy REIT – Year Highlights
Q4 FY2025 Earnings Materials Embassy REIT – 6 Year Highlights Since listing in 2019, Embassy REIT has performed exceptionally across all parameters to create value for unitholders, including delivering 10% annualized returns 63% 17.0 msf 8.0 msf 26.2 msf Increase in Completed Area Acquisitions(1) Ne
Slide 7: II. Key Highlights
Q2 FY2025 Earnings Materials II. Key Highlights Central Garden, Embassy TechVillage, Bangalore
Slide 8: FY2025 – A Year of Robust Leasing and Portfolio Expansion
Q4 FY2025 Earnings Materials FY2025 – A Year of Robust Leasing and Portfolio Expansion In FY2025, we leased 6.6 msf (mainly to GCCs), delivered 2.5 msf of new offices in Bangalore, and acquired a best in-class park in Chennai to our portfolio of 51.1 msf Surpassed Initial Leasing Guidance by 22% New
Slide 9: FY2025 Highlight: 8% YoY Growth in Distributions
Q4 FY2025 Earnings Materials FY2025 Highlight: 8% YoY Growth in Distributions Along with meeting FY2025 guidance for NOI and distributions and delivering Revenue & NOI growth of 10%, we delivered DPU growth of 8% year-on-year Particulars FY2025 FY2024 Growth(%) Delivered on FY25 Distribution Guidanc
Slide 10: Portfolio Occupancy Trending Upwards
Q4 FY2025 Earnings Materials Portfolio Occupancy Trending Upwards Portfolio occupancy stands at 87% by area and 91% by value. Bangalore, Mumbai and Chennai (85%+ of REIT’s value) are above 90% occupancy levels Occupancy (%)(2) Occupancy (%)(2) City Occupancy for Marquee Assets (Top 5)(3) FY25 FY24 A
Slide 11: Robust Leasing Performance
Q4 FY2025 Earnings Materials Robust Leasing Performance We leased 6.6 msf across 98 deals at 24% leasing spreads, and surpassed initial leasing guidance of 5.4 msf by 22% Area (msf) 8.1 6.6 msf Total Lease-up across 98 deals(1) 6.6 4.0 msf 5.1 5.4 msf New Lease-up at 37% 6.8 Initial Re-leasing Sprea
Slide 12: GCCs Continue to Drive Demand
Q4 FY2025 Earnings Materials GCCs Continue to Drive Demand GCCs contributed to 61% of the FY2025 leasing, primarily from Technology and Financial Services sectors FY2025 Leasing Driven by GCCs JP Morgan Rolls Royce GCCS / Key Multinationals GCCs 61% FY2025 Total Lease-up: 6.6 msf Others 39% Mercedes
Slide 13: Leasing Highlights for the Quarter
Q4 FY2025 Earnings Materials Leasing Highlights for the Quarter Q4 lease deals totaled 1.6 msf and spanned multiple sectors, with GCCs driving 62% of the total leasing Area Q4 Leasing across Sectors Occupier Property Sector ('000 sf) New Leases 1,296 Retail Others 3% 8% Research, Consulting & Resear
Slide 14: Hospitality Business Continues to Grow Across Key Parameters
Q4 FY2025 Earnings Materials Hospitality Business Continues to Grow Across Key Parameters Operating hotel portfolio continued to grow strongly with 63% occupancy, 12% YoY ADR growth and FY2025 EBITDA of ₹2,298 mn (up 25% YoY) Revenue (₹ mn) & EBITDA (₹ mn) 5,039 4,363 3,394 2,298 1,841 982 609 231 (
Slide 15: Acquisition of Embassy Splendid TechZone in Chennai
Q4 FY2025 Earnings Materials Acquisition of Embassy Splendid TechZone in Chennai Completed the acquisition of a 5.0 msf premium business park located in Chennai’s fastest-growing office micro-market at an enterprise value of ₹12 bn 5.0 msf Total Leasable Area Chennai ~₹12 bn Enterprise Value(1) 9.2%
Slide 16: Guiding to Double Digit Growth in FY2026
Q4 FY2025 Earnings Materials Guiding to Double Digit Growth in FY2026 FY26 NOI guidance of ₹35.9 bn to ₹38.1 bn and distributions guidance of ₹24.50 to ₹26.00 per unit, implying 13% NOI growth and 10% DPU growth YoY at the mid-point of guidance range Distributions (₹ per unit) NOI (₹ mn) FY26 DPU ₹3
Slide 17: III. Looking Ahead
Q2 FY2025 Earnings Materials III. Looking Ahead Embassy Manyata, Bangalore
Slide 18: Multiple Embedded Growth Levers
Q4 FY2025 Earnings Materials Multiple Embedded Growth Levers Embassy REIT’s strategy capitalizes on multiple drivers to boost NOI and generate long-term total returns for its Unitholders Vacant area lease-up – occupancy expected to stabilize at pre-Covid 5.3 msf levels of mid-90s in the next few y
Slide 19: Embedded Rent Growth and Limited Upcoming Expiries
Q4 FY2025 Earnings Materials Embedded Rent Growth and Limited Upcoming Expiries Contracted rent escalations (generally ~15% every 3 years) and significant mark-to-market opportunity (10% blended MTM till FY2029) are key drivers for NOI growth Embedded Rent Escalations of 12%-15% aids NOI Growth 22%
Slide 20: Active Best-in-Class Development Pipeline
Q4 FY2025 Earnings Materials Active Best-in-Class Development Pipeline Development pipeline of 6.1 msf with an expected 18% yield on cost Development Pipeline(1) (msf) Area (msf) 90%(2) 68% - 38% 3.2 2.5 1.4 2.2 0.9 1.9 0.6 1.4 FY2025 FY2026 FY2027 FY2028 Delivered New Development(1) Redevelopment O
Slide 21: Delivered | Embassy Manyata – M3 Block B
Q4 FY2025 Earnings Materials Delivered | Embassy Manyata – M3 Block B Actual Picture 0.6 msf ANZ 100% Total Area Global Australian Bank Occupancy Note: (1) Apr’25 Picture 21
Slide 22: Delivered | Embassy TechVillage – Block 8
Q4 FY2025 Earnings Materials Delivered | Embassy TechVillage – Block 8 Actual Picture 1.9 msf 77% 87% Total Area Area Occupied by GCCs Occupancy(1) Notes: (1) Includes expansion options of ~68k sf available with two tenants in Embassy TechVillage 22 (2) Apr’25 Picture
Slide 23: Upcoming Deliveries | Embassy Splendid TechZone – Blocks 4 and 10
Q4 FY2025 Earnings Materials Upcoming Deliveries | Embassy Splendid TechZone – Blocks 4 and 10 Block 4 Block 10 Actual Picture Perspective Actual Picture Perspective Perspective 0.6 msf Jun’25 0.4 msf Jun’25 Total Area Target Delivery Total Area Target Delivery Robust Leasing Pipeline for both Blo
Slide 24: Upcoming Deliveries | Embassy Manyata – Block L4
Q4 FY2025 Earnings Materials Upcoming Deliveries | Embassy Manyata – Block L4 Perspective Actual Picture 0.8 msf 100% Sep’25 Total Area Pre-leased to American Target Delivery Retailer Note: (1) Apr’25 Picture 24
Slide 25: Upcoming Deliveries | Embassy Manyata – Blocks D1 and D2
Q4 FY2025 Earnings Materials Upcoming Deliveries | Embassy Manyata – Blocks D1 and D2 Actual Picture Perspective 1.4 msf 100% Feb’26 Total Area Pre-leased to Target Delivery Australian Bank(1) Notes: (1) Includes expansion option of 453k sf available with Australian Bank in Embassy Manyata 25 (2) Ap
Slide 26: Upcoming Deliveries | Embassy Splendid TechZone – Block 1
Q4 FY2025 Earnings Materials Upcoming Deliveries | Embassy Splendid TechZone – Block 1 Perspective 0.6 msf OMR 2 Jun’26 Total Area Located in one of Chennai’s Target Delivery fastest growing micro market 26
Slide 27: IV. Financial Updates
Q2 FY2025 Earnings Materials IV. Financial Updates Embassy TechVillage, Bangalore
Slide 28: Strong Q4 FY2025 Financial Results
Q4 FY2025 Earnings Materials Strong Q4 FY2025 Financial Results During Q4 FY2025, Revenue grew 15% & NOI grew 17% YoY; we announced total distributions of ₹5.4 billion or ₹5.68 per unit in Q4, up 9% YoY Revenue (₹ mn) NOI (₹ mn) 81% 82% 10,858 +15% +17% 8,923 9,458 7,656 Q4 FY24 Q4 FY25 Q4 FY24 Q4 F
Slide 29: 8% YoY Growth in Distributions and ₹120 bn Distributed since Listing
Q4 FY2025 Earnings Materials 8% YoY Growth in Distributions and ₹120 bn Distributed since Listing Delivered annual distributions of ₹21,811 mn or ₹23.01 per unit, up 8% YoY Distribution Highlights Distribution Mix – FY2025 Particulars Q4 FY2025 FY2025 Distribution period Jan’25 – Mar’25 Apr’24 – Mar
Slide 30: Well-Diversified and Conservative Debt Book
Q4 FY2025 Earnings Materials Well-Diversified and Conservative Debt Book Option 1: ₹30 bn Bond at REIT Level and ₹15 bn LRD at Manyata to refinance ZCB at an average Total debt book of ₹198 bn well-balanced across diverse investor pools, debt instruments and tenures coupon rate of 7%, average maturi
Slide 31: Active Debt Management to Optimize Cost of Capital
Q4 FY2025 Earnings Materials Active Debt Management to Optimize Cost of Capital Actively managed debt book, with industry-leading cost of borrowing in a volatile interest rate environment 79% 78% 62% 61% 60% 51% 35% 10.00% 32% 9.61% 9.50% 30% 29% 28% 9.00% 25% 24% 8.50% 22% 8.00% 20% 7.82% 7.90% 7.8
Slide 32: 5% YoY Growth in NAV
Q4 FY2025 Earnings Materials 5% YoY Growth in NAV GAV up by 10% YoY to ₹612 bn and NAV up by 5% YoY to ₹423.22 per unit. Over 75% of the portfolio value concentrated in Bangalore, India’s best performing office market Particulars (₹ mn) March 31, 2025 GAV Break-up by Segment Gross Asset Value (GAV)(
Slide 33: Blue-chip Unitholder Base
Q4 FY2025 Earnings Materials Blue-chip Unitholder Base Unitholder base continues to expand and diversify since listing. Public float of 92% is well distributed among foreign and domestic institutions and retail unitholders Well-diversified Investor Base Increasing Acceptance of REIT as an Investment
Slide 34: Walkdown of Key Financial Metrics
Q4 FY2025 Earnings Materials Walkdown of Key Financial Metrics Particulars Q4 FY2025 Q4 FY2024 Variance (%) FY2025 FY2024 Variance (%) Revenue from Operations 10,858 9,458 15% 40,389 36,852 10% NOI Property Taxes and Insurance (390) (360) 8% (1,462) (1,371) 7% Direct Operating Expenses (1,544) (1,44
Slide 35: V. Market Outlook
Q2 FY2025 Earnings Materials V. Market Outlook Embassy TechZone, Pune
Slide 36: India | The Office to the World
Q4 FY2025 Earnings Materials India | The Office to the World India remains optimally positioned to drive global offshoring demand, led by favorable demographics, skilled talent availability and cost-efficient high-quality spaces offered in India’s gateway cities India’s Dual Structural Advantage Con
Slide 37: India Office – Occupier Driven Absorption
Q4 FY2025 Earnings Materials India Office – Occupier Driven Absorption Indian office market continues to shine. Gross Absorption in 2025 projected to beat last year’s record high of 74.4 msf, driven by continued demand from GCCs Demand and Supply Trends(1) 82.0 82.8 85.0 30% 74.4 75.0 65.5 67.1 60.8
Slide 38: Bangalore – India's Leading Office Market
Q4 FY2025 Earnings Materials Bangalore – India’s Leading Office Market On the back of sustained demand from GCCs, Bangalore continues to lead India’s office absorption which has resulted in continued rental growth in key micro-markets Balanced Demand-Supply Aiding Rent Growth Embassy REIT’s Strategi
Slide 39: VI. ESG & Total Business Ecosystem
Q2 FY2025 Earnings Materials VI. ESG & Total Business Ecosystem Embassy GolfLinks, Bangalore
Slide 40: Certifications and Awards
Q4 FY2025 Earnings Materials Certifications and Awards ESG certifications, awards and performance on global benchmarks reflect our commitment to sustainability and transparency Building Certifications World’s Largest USGBC LEED 35 Buildings Certified for 5-star Rating for 100% ISO 9001/14001/45001/2
Slide 41: Our ESG Initiatives
Q4 FY2025 Earnings Materials Our ESG Initiatives We achieved our 3-year sustainability targets across 19 ESG programs that are aligned to our broader 2040 net zero commitment Pillar Metric Target(1) FY25 Update Status ► Renewable energy consumption share 75% by FY25 55%(2) Not Achieved ► Water consu
Slide 42: Annual 'Occupier Connect' Event
Q4 FY2025 Earnings Materials Annual ‘Occupier Connect’ Event Successfully hosted the third edition of the ‘Occupier Connect’ event, themed ‘The Advent of AI’ with participation from strategic partners and 300+ corporate occupiers Occupier Connect Event 2025 42
Slide 43: Embassy 'Energize': Catering to our Occupiers' Employees
Q4 FY2025 Earnings Materials Embassy ‘Energize’: Catering to our Occupiers' Employees We held multiple cultural, sports and lifestyle events across our business parks, aimed at engaging the 200,000+ employees working in these properties Energize Pedal For The Planet 2024 43
Slide 44: VII. Appendix
Q2 FY2025 Earnings Materials VII. Appendix Embassy Manyata, Bangalore
Slide 45: Who We Are: Quick Facts
Q4 FY2025 Earnings Materials Who We Are: Quick Facts Embassy REIT is India’s first listed REIT and the largest office REIT in Asia by area. It owns and operates a commercial office portfolio across 5 major cities in India 51.1 msf(1)(2) 272 87% Portfolio Blue-chip Occupancy occupiers 14 1,614(2) 100
Slide 46: High Quality and Diversified Occupier Base
Q4 FY2025 Earnings Materials High Quality and Diversified Occupier Base GCCs and Tech occupiers constitute over 70% of our total occupier base, which now boasts over 270 marquee names Industry Diversification(1) Top 5 Occupiers Sector % of Rentals Financial Services JP Morgan Financial Services 6.9%
Slide 47: Portfolio Summary
Q4 FY2025 Earnings Materials Portfolio Summary 51.1 msf pan-India office portfolio anchored in Bangalore and backed by hotels, renewable energy and a commitment to delivering world-class office spaces to occupiers (2)(2) (3) Leasable Area (msf)/Keys/MW WALE Occupancy Rent (₹ psf / mth) GAV(3) Proper
Slide 48: Embassy REIT Structure
Q4 FY2025 Earnings Materials Embassy REIT Structure Blackstone Embassy Sponsor Group Sponsor Public Unitholders Acts on behalf Management of Unitholders Embassy Services Trustee Manager (Axis Trustee) REIT (EOPMSPL) 100% Manyata Promoters Private Limited (Embassy Manyata) 80% 50%(1) 100%(3) 100% 100
Slide 49: Ten Infrastructure-like Office Parks
Q4 FY2025 Earnings Materials Ten Infrastructure-like Office Parks Embassy Manyata Embassy TechVillage Embassy TechZone Bangalore (16.2 msf) Bangalore (9.6 msf) Pune (5.5 msf) Embassy Splendid TechZone Embassy Oxygen Embassy GolfLinks Chennai (5.0 msf) Noida (3.3 msf) Bangalore (3.1 msf) Embassy Quad
Slide 50: Four Prime City-center Offices
Q4 FY2025 Earnings Materials Four Prime City-center Offices Express Towers FIFC Embassy One Mumbai (0.5 msf) Mumbai (0.4 msf) Bangalore (0.3 msf) Embassy 247 Mumbai (1.2 msf) 50
Slide 51: Key Terms & Definitions
Q4 FY2025 Earnings Materials Key Terms & Definitions Notes: 37. MNC – Multinational Corporation ► All figures in this presentation are as of March 31, 2025, unless otherwise specified 38. msf – Million square feet ► All figures corresponding to year denoted with “FY” are as of or for the one-year pe
Slide 52: Disclaimer
Q4 FY2025 Earnings Materials Disclaimer This presentation is issued by Embassy Office Parks Management Services Private Limited (the “Manager”) in its capacity as the Manager of the Embassy Office Parks REIT (“Embassy REIT”), for general information purposes only, without regards to the specific obj
Slide 53: Embassy Splendid TechZone Acquisition
Embassy Splendid TechZone Acquisition
Embassy Office Parks REIT — Q4 FY2025 Earnings Presentation on 6ix