Embassy Office Parks REIT

- In Q2 FY2026, Embassy REIT raised ₹2,000 crores of debt through a 10-year NCD at 7.33%, mainly used to refinance higher-cost debt. - Recently raised ₹400 crores through commercial paper at an effective rate of 6.44% per annum. - There is an upcoming refinancing of ₹1,100 crores, expected to reduce interest cost by some basis points. - Embassy REIT is actively evaluating multiple acquisition opportunities from third parties and Embassy group, which may involve future fundraising. - No explicit mention of equity raising in the current call. - The management aims to optimize interest costs and has pioneered newer debt capital pools for the industry.

- Embassy REIT has a maintenance capex run rate of ₹70-80 crores per annum for the whole portfolio. About 50-60% of these expenses typically get capitalized depending on the nature of the repair. (Page 13) - There is a development pipeline of 7.2 msf, with approximately 5.2 msf to be delivered in the next 3 years and 2 msf thereafter. These developments are highly accretive to NOI and DPU, with yield on cost around 15%. (Pages 3, 12) - New developments include buildings in Embassy Manyata (Bangalore) and Embassy Splendid TechZone (Chennai), with several blocks either completed or pre-leased and upcoming deliveries scheduled. (Pages 3, 12) - Embassy is evaluating an opportunity for a commercial project in Whitefield, Bangalore, and is actively exploring third-party acquisition opportunities across top 6 cities in India. (Page 9) - The SEZ conversion process is ongoing, with 8.1 msf converted so far, aiding more flexible leasing and potential future development. (Page 12)

- Embassy REIT expects continued strong growth with FY2026 guidance targeting: - NOI growth between ₹3,589 to ₹3,811 crores (approx. 13% YoY growth) - Distribution per unit (DPU) growth of 10% YoY, targeting ₹24.50 to ₹26.00 per unit - Occupancy is projected to reach 90%-91% by portfolio area by March 2026 - Strong leasing momentum continues, with expectations to surpass previous leasing records (80 msf gross leasing for CY2025) - Development pipeline of 7.2 msf to drive future NOI and DPU growth with yields around 15% - Growth in key financial metrics supported by rental escalations, hotel ADR increases, and deliveries of new office buildings - Interest cost benefits from refinancing expected to boost distribution growth going forward - Long-term demand supported by expanding multinational corporates and GCCs entering the market

- Embassy REIT expects strong future growth driven by robust leasing momentum and new deliveries. - FY2026 guidance includes 13% growth in Net Operating Income (NOI) and 10% growth in Distributions Per Unit (DPU). - Anticipated portfolio occupancy of 90%-91% by March 2026. - Development pipeline of 7.2 million sq ft, largely pre-leased, with yield on cost around 15%, expected to be DPU accretive after initial rent-free fitout periods. - Interest cost reductions from recent refinancing to improve profitability starting next quarter. - FY2027 and FY2028 NOI expected to be higher, though not specifically quantified, with potential for sharper like-for-like NOI and distribution growth. - Non-cash NOI due to rent-free periods will persist, but leasing growth will offset its drag. - Overall, Embassy REIT is confident of continuing meaningful earnings and distribution growth.

- Current orderbook of Requests for Proposals (RFPs) in the market is about 12.5 million square feet (msf). - Approximately 60% of this RFP demand is concentrated in Bangalore, where Embassy REIT holds its largest portfolio. - There is a strong presence and increasing interest from Global Capability Centers (GCCs), especially mid-tier GCCs entering India for the first time. - The GCC count is expected to grow from about 1,900 to between 2,200 and 2,400. - For Chennai, there is a mature pipeline of about 0.8 msf of leasing, with expected absorption within a couple of quarters. - In Pune, a pipeline of approximately 150,000 square feet has been built despite the market being sluggish. - The development pipeline includes 7.2 msf slated for delivery over the next 3+ years, with pre-leasing already underway for most assets.