Embassy Office Parks REIT

- Embassy REIT raised ₹400 crores through commercial paper at 6.44% per annum during the quarter. - The company plans to fund its ₹4,000 crores incremental capex entirely through debt. - Focus is on securing longer-term, fixed-rate debt with around 60% of their debt portfolio currently at fixed rates. - The RBI revised proposal allowing banks to participate alongside capital markets for longer-term debt is expected to increase liquidity and participation, possibly leading to some rate reductions. - Current interest rate environment at ~7.3% is considered near the bottom of the rate-cut cycle, with limited meaningful downward movement anticipated. - Embassy REIT is actively evaluating third-party acquisitions and sponsor asset acquisitions, which may require further fundraising. An upcoming Analyst Day will detail acquisition and funding plans.

- Launched third redevelopment project at Embassy Manyata to increase leasable area in E1 block from 0.2 msf to 0.8 msf with a 23% yield on cost. - Development pipeline stands at 7.6 msf with a total capex of ₹4,000 crores, expected to add around ₹740 crores in stabilized NOI by FY2030. - Delivery of 0.4 msf Block 10 in Embassy Splendid TechZone (fully leased) and expected occupancy certificate soon for another 0.6 msf Block 4. - Construction of 518-key Hilton hotels at Embassy TechVillage on track for Oct 2026 delivery. - Exploring new 116-key mid-scale hotel in Embassy TechZone, Pune, with estimated capex of ₹45 crores. - Entered into acquisition evaluation for Embassy Zenith and completed acquisition of Pinehurst to consolidate portfolio. - Expect capex funding primarily through debt; projected LTV expected to stabilize around 30% in the long term.

- Embassy REIT expects continued positive momentum in the India office market with over 170 msf absorption versus ~130 msf new supply over the next 2 years. - They foresee the existing 80 msf portfolio growing to about 80-85 msf over the next 2 years driven by strong leasing demand, especially from GCCs and mid-tier companies. - Market rents have increased by 9% YoY, with expected further rental growth, particularly in Bangalore, Mumbai, and Noida. - New developments of 7.6 msf with ₹4,000 crores capex are projected to add around ₹740 crores in stabilized NOI by FY2030. - Q3 YTD leasing stands at 4.6 msf with 1.1 msf leased in Q3 alone, supporting growth. - Management guides for FY2026 NOI of ₹3,589 to ₹3,811 crores (13% growth) and DPU growth of 10%. - Leasing lease spreads are strong (17% re-leasing spread) and occupancy remains high (~90% by area).

- Embassy REIT expects strong future growth with FY2026 guidance targeting: - NOI (Net Operating Income) in the range of ₹3,589 to ₹3,811 crores (13% YoY growth). - DPU (Distributions Per Unit) projected between ₹24.50 to ₹26.00 per unit (10% YoY growth). - The company’s NOI grew 19% YoY in Q3 FY2026, supported by new lease-up at high re-leasing spreads and rental escalations. - Rental values have increased by 9% YoY across the portfolio, with higher growth in Mumbai (19%), Noida (16%), and Bangalore (7%). - Market absorption and leasing momentum are expected to remain robust, driven by GCCs and flex operators. - New developments, including Embassy Manyata and Embassy Splendid TechZone, will add NOI (~₹100 crores FY27) with stabilization expected within 6 months of delivery. - Inorganic growth through acquisitions is being evaluated, with plans to expand in top cities. - Interest cost trends may temporarily impact distributable earnings but are expected to stabilize over 3-4 years.

The transcript does not explicitly mention current or expected orderbook or pending orders for Embassy Office Parks REIT. However, related insights include: - Approximately 18.5 million square feet (msf) of RFPs (Requests for Proposal) are currently floating in the market, indicating strong demand and potential upcoming leasing activity. - There is a pipeline of about 400,000 square feet in the Pune market, which is confident to be converted into leases. - Leasing traction is robust with 4.6 msf leased YTD and 1.1 msf leased in Q3. - Market absorption is projected at about 80-85 msf over the next 2 years. - The company is actively evaluating inorganic growth opportunities with third-party and sponsor assets under consideration. No direct figures on orderbook or pending orders are provided; focus is on leasing pipelines and acquisition opportunities.