Embassy Office Parks REIT has reported a 17% year-on-year growth in both revenue from operations and net operating income (NOI) for the quarter ended June, driven by sustained office leasing demand from Global Capability Centres (GCCs) and AI-led occupiers.Revenue from operations rose to Rs 1,241 crore during the quarter, while NOI increased to Rs 1,020 crore, the Real Estate Investment Trust (REIT) said in its earnings release.The REIT leased 1.3 million sq ft across 17 transactions during the quarter, including 0.7 million sq ft of new leases at 11% re-leasing spreads and 0.6 million sq ft of renewals at 9% higher spreads.GCCs contributed 81% of the leasing demand during the quarter.
New entrants accounted for 86% of new leasing, including 21% from AI-related companies, with leases signed at an average premium of 8% to market rents.“This reflects the growing depth and quality of India’s office market, with companies shaping the AI-driven economy choosing our campuses as platforms for growth.
This strong momentum is also being complemented by greater recognition of REITs in India’s capital markets,” Amit Shetty, CEO, Embassy REIT.The REIT has declared a distribution of Rs 598 crore, or Rs 6.31 per unit, for the quarter, up 9% year-on-year.
