Thank you, Ryan. Welcome to the third-quarter FY2026 earnings call for Embassy REIT.

Embassy REIT released its financial results for the quarter and nine months ended December 31st, 2025 last Friday. As is our standard practice, we have placed our financial results, earnings presentation discussing our performance, and a supplementary financial and operating data book in the Investors section of our website at www.embassyofficeparks.com.

As always, we would like to inform you that management may make certain comments on this call that one could deem forward-looking statements. Please be advised that the REIT's actual results may differ from these statements.

Embassy REIT does not guarantee these statements or results, and is not obliged to update them at any time. Specifically, any financial guidance and pro forma information that we provide today on this call are management estimates based on certain assumptions and have not been subjected to any audit or examination procedures.

We caution not to place undue reliance on such information, and there can be no assurance that we will be able to achieve the same. Joining me today are Amit Shetty, our CEO, and Abhishek Agrawal, our CFO.

We will start off with remarks on our business and financial performance, and then open the floor to Q&A. Over to Amit.

Thank you, Sakshi. Good morning, and thank you all for joining us today.

Quarter three was a standout quarter for us, with a strong leasing and financial performance, as well as a clear focus on accelerating growth by adding quality assets through organic and inorganic expansion. Some of the key highlights for the quarter are: we announced the acquisition of Pinehurst in our prime asset, Embassy GolfLinks, from a third party; we received an invitation for offer for Embassy Zenith, a landmark office tower in central Bangalore, which is leased to one of the world's largest tech companies; we have launched a new redevelopment project in Embassy Manyata at an impressive 23% yield on cost, and we are now looking to expand our hospitality portfolio with a new hotel in Pune; we also delivered a 0.4 million square feet, fully leased new office tower in Chennai, a market which has seen a strong rebound and increased traction from some of the largest global companies; and we once again registered a double-digit growth across all our key financial metrics and grew our NOI by 19% and our DPU by 10%.

Let me take you through some of the details. Let me start with an update on the Indian office market.

On the back of a record closing quarter, the calendar year 2025 clocked the highest-ever gross absorption of 80 million square feet and net absorption of 51 million square feet, which is 8% and 14% up respectively. The GCC and the flex operators were at the forefront of this demand, contributing to about 60% of the total leasing.

Bangalore again outshined with the highest market share of about 27%. With vacancies tightening, rents have started to grow across key micromarkets.

For our portfolio, market rents have gone up by 9% year-on-year, with a 19% growth in Mumbai, 16% in Noida, and a 7% in the Bangalore assets. This has resulted in increasing the total mark-to-market potential of our portfolio to 11%, a 600 basis point jump just in the last three months.

We see this as a positive momentum to continue for the Indian office, with over 170 million square feet of absorption expected versus around 130 million square feet of new supply over the next two years. With this backdrop, let me delve deeper into our quarter three leasing performance.

We leased 1.1 million square feet across 22 deals, bringing our total YTD leasing to 4.6 million square feet. Our quarter three leasing included 0.8 million square feet of new leases, signed at an impressive 17% releasing spread, implying a 5% premium to market rents on an average.

This was over and above the 9% year-on-year growth already seen in the market rents of our portfolio assets, demonstrating the superior quality of our portfolio and the strength of our leasing teams. With limited vacancies available in these properties, we believe that this rental growth momentum will continue, further solidifying the mark-to-market opportunities available in our portfolio.

Our core Bangalore portfolio contributed to over two-thirds of the total leasing, and three out of our five properties in this city are now 100% occupied. We are also noting early greenshoots in our Pune properties, with an increase in leasing inquiries and around 0.5 million square feet of leases signed across our three assets in the last nine months.

Overall, we maintained our portfolio occupancy of 90% by area, 94% by value, and three out of our five cities are at over 95% occupancy. Next on our portfolio development, we launched our third redevelopment project at Embassy Manyata, aimed at increasing the leasable area of E1 block from 0.2 million square feet to 0.8 million square feet through utilization of unutilized FAR.

The project is highly attractive, at an yield on cost of 23%. We continue to evaluate more such opportunities in Bangalore, and will update the market in due course.

We've received occupancy certificate for 0.4 million square feet, Block 10 in Embassy Splendid Techzone in Chennai, which is leased to a global healthcare company. We expect to receive the occupancy certificate for another 0.6 million square feet, Block 4 in the same park by the end of this month.

With this, our total development pipeline now stands at 7.6 million square feet, which will result in an area increase of 19% organically. With a total capital outlay of about 4,000 crores, we expect these projects to add around 740 crores in stabilized NOI by FY2030.

The 518-key Hilton hotels at Embassy TechVillage remain on track for October '26 delivery. We are also exploring a new 116-key midscale hotel in Embassy Techzone in Pune, similar to our hospitality portfolio in Bangalore.

This new hotel is envisaged as a strategic ancillary offering for our tenants in our park and the vicinity areas. Moving ahead to updates on our inorganic growth and capital recycling: we have received an invitation to offer to acquire Embassy Zenith, a 0.4 million square feet office tower located in CBD Bangalore.

The building is fully leased to one of the world's largest tech companies, which can add meaningfully to our tenant roster. We will start our evaluation and will update the market as we progress.

During the quarter, we announced the third-party acquisition of Pinehurst, a fully leased 0.3 million square feet office building aimed to consolidate our ownership in Embassy GolfLinks. The transaction, valued at 852 crores, implies a NOI of 7.9% and aligns with our strategy of disciplined, accretive growth.

In addition, we continue to evaluate multiple third-party acquisition opportunities available in the market. We also completed the divestment of 376,000 square feet of two strata-owned blocks in Embassy Manyata for a total consideration of 530 crores.

In summary, we delivered another strong quarter to wrap up the calendar year. We're happy to report that during the year, we delivered a total return of 25%, significantly outperforming the Nifty's 12% return and Nifty Realty's 16% decline, reinforcing the strong risk-adjusted appeal of REIT asset class.

We're determined to carry forward this benchmark and continue our growth trajectory to the benefit of our 125,000-plus investor base. I will now hand over to Abhishek to present our financial updates.

Thank you, Amit, and good morning, everyone. Let me take you through the key financial highlights for the quarter.

We delivered strong, double-digit year-on-year growth across our financial numbers, and reported our highest-ever revenue and NOI. We grew our revenue by 17% to Rs 1,193 crores, and NOI by 19% to Rs 985 crores year-on-year.

The increase was mainly driven by new lease-up at high releasing spreads, contracted rent escalations, and new buildings delivered during the period. Our hotel segment NOI grew by 13% year-on-year due to an occupancy uptick of 100 basis points to 60%, as well as an ADR growth of 11%.

We declared distributions of Rs 613 crores, or Rs 6.47 per unit for the quarter, representing a 10% year-on-year growth. This increase was driven by an uptick in our NOI, which was partially offset by net SD refunds and an increase in our interest costs.

During the quarter, we successfully raised Rs 400 crores through a commercial paper at an impressive effective rate of 6.44% per annum. Post this, our net debt stood at Rs 20,631 crores as of December '25, implying a 32% leverage ratio at 7.29% average in-place interest rate.

I want to highlight that we have successfully reduced our in-place debt cost by 61 basis points in the last nine months through our active debt management. Lastly, on the forward financial outlook: based on our YTD performance, we remain on track to achieve our FY26 guidance.

We continue to expect our NOI to be in the range of Rs 3,589 to Rs 3,811 crores, and DPU to be in the range of Rs 24.5 to Rs 26 per unit. At midpoint, this guidance implies a 13% growth in NOI and a 10% growth in DPU on a year-on-year basis.

With this, let's move to Q&A, please.

Thank you so much, and congratulations on good performance once again. My first question is with respect to the market rentals that you've disclosed in your presentation.

Bulk of it, Embassy Manyata, ETV, FIFC, 24/7, have all gone up meaningfully in this quarter. Can you talk about two things: whether is it a this quarter phenomenon, or are you just recognizing it?

Second, how different are these from your last leasing rentals?

Puneet, you want to continue your next question as well, we'll take that together?

Yeah. Secondly, on your hotel at Hinjewadi, if you can talk a bit more about what is the capex you are looking at and where will it really come up.

Also, lastly, how much did you spend during the quarter in terms of capex? That's all.

Okay. Let me take the first question.

The market rentals that you are seeing, just to give you a broader picture, the market saw about 82.6 million square feet of absorption and about 80 million square feet in the top seven cities of the country. Now, what it did was the vacancy was declined, which was 21%, is now moved to 20%, and thereby, there's a increased demand given the supply that came into the market was about 57 million square feet itself.

If you see, the net absorption that's taken place in the market is about 14%, and thereby, across the country, we've seen tightening of the rental values. Given this, particularly we've seen a 17% releasing spread across our 0.8 million new leasing that we've done, and from a market potential, we've now reassessed to a 11% mark-to-market opportunity that we have seen, with a 9% rental growth across all our portfolio.

Some of the outliers being Mumbai. Mumbai, like we said, has seen double-digit rental growth.

Noida is seeing double-digit rental growths as well, right, with Bangalore being at about 7%. We believe that the Bangalore, given the market and the supply, I think in the coming days, the Bangalore rentals will also climb higher.

Now moving on to the next question, which is the hotel at Hinjewadi. We believe, like we've always said to the market, that we believe in building a larger business ecosystem, and this is again aimed at that.

We're planning to build a 116-key midscale hotel in Hinjewadi in Embassy Techzone with a capital outlay of about 45 crores.

Okay. Just a bit on the rental part again, right?

In your Embassy Manyata, the market rentals you claim is 105 rupees, ETV also 105. There, if you can suggest that whether you've been able to lease at higher rentals than this, and what are those numbers, and these are your rentals, not just the market rentals?

See, hey, this is our rentals to start off with, and also, we've actually been very conservative of what we've actually disclosed to the market. We've actually achieved higher rentals as well beyond these rentals.

We just continue to see, given that Manyata is at now 94% occupied and of that vacancy of about 800,000 square feet, which has H1 block, which is actually about 375,000 square feet, which is undergoing refurbishment, effectively the vacancy that we have is about 500,000 square feet in Manyata. With this, we believe that the rental rates will only move up, given the expiries and also some of the new redevelopments that we're doing in Manyata.

We're really excited for Manyata right now.

Understood. That's very helpful.

That's all from my side. Thank you, and all the best.

Good morning, everyone, and thanks for the opportunity. I'm just continuing with the previous question on market rental growth.

Particularly Mumbai has seen very strong reset. In your presentation, you've mentioned that in Express Towers you have been able to get 26% MTM and a premium of 22%, which means almost 400 rupees rental for Express Towers, and similarly for Embassy.

Can you explain what's happening there? You've been able to get a meaningful premium to the market.

Is it a trend? Are these small transactions?

Or do you expect then the mark-to-market in these, especially Mumbai portfolio to continue to go up?

Yeah.

That's my first question. Again on Pune as well, I think you mentioned about green shoots there.

What's the outlook? Is it something that mentioned about the general tightness on supply-demand?

Is that driving it, or is it something particular about the western part of Pune where things are now looking up? Comments on that, yeah.

Sure. First let me take the Mumbai market.

I think Mumbai from overall market perspective, given the infra development that have happened, given the Coastal Road, the Atal Setu, and a couple of other flyovers and also the metro lines, I think there's a meaningful demand in Mumbai. If you see, Mumbai is the second-largest city in terms of absorption.

Having said that, Express Towers, where is just located in South Bombay, given the Coastal Road, is seeing a large increase in the demand there itself. We believe that this demand will continue to grow.

If you see Mumbai as a city as well, given that even Embassy 247's done extremely well, we believe that the continuing will see this uptick going forward. That's first.

Moving on to the Pune market, again, like we mentioned, Pune market, if you see for the last nine months, we've actually done about 500,000 square feet of leasing, and about 100,000 square feet of leasing is in Quadron itself. We've got meaningful inquiries.

We've got a pipeline of about 400,000 square feet in Pune that we've already built up. The reason is that the metro is now finally in Hinjewadi, with the Phase 3 trials of the metro, while the government's declared that March '26 is when the metro will be officially opened.

Even if we are a little pessimistic and think that June '26 is something which we're very confident that the metro will be operational. Given that, we're seeing about 2.1 million square feet of RFPs in the Pune market.

Also given the fact that the arbitrage of rent between the eastern side and the western side of Pune, between a 80, 100-rupee market to a 50, 60-rupee market, we believe that a meaningful demand will now shift to Hinjewadi, given the metro operationalization.

Okay. Any Pune portfolio occupancy targets that you have, for Quadron, for Techzone, for Qubix?

See, Pune is currently at 62% occupancy, right? We would like to move that up.

I would not like to comment on any forward-looking statements here, but, like I said, there's a 400,000 square feet pipeline which we are confident of converting, and in due course, we'll announce to the market as and when these trades happen.

Understood. Just one last clarification.

This should mean that when your NAV is being revised next quarter, the fourth quarter, there should be a meaningful revision in that as well?

Absolutely, absolutely. See, the NAV obviously from a leasing occupancy perspective, as well as the market mark-to-market opportunity as well, I think these two factors will be considered when we revise the next NAV in the next quarter.

This could also mean that the Quadron write-off that you had taken that could again be revalued? Is that a possibility?

Mohit,

this is Abhishek. On the revaluation, what will happen is once we see that actually leasing has happened and it's a reversal, that is when we'll want to take the reversal of that impairment.

Understood. Thank you so much.

Those were my questions. All the best.

Thank you.

Thank you.

Good morning. Thank you for taking my questions.

Releasing spreads at around 17% was significantly lower than what was achieved over the past five years. Now, with Bangalore driving leasing activity and your portfolio over there operating at close to 95% occupancy, please help me understand what's keeping the spreads under pressure.

My second question would be: for the developments that are planned to come online this calendar year, the ones especially at Manyata and Splendid Techzone, what is the NOI contribution you're expecting to flow through over FY2027? How long would these developments take to stabilize once they start contributing fully to revenue?

You want to continue your next question as well?

All right, that was my second question. I do have another question, it is: how is the approximately 38 billion of capex that is expected to be spent through FY2028 to be funded?

How do you think LTV is likely to evolve over the period?

Yes. Abhishek, you want to take the second and the third question, and I'll take the first question later?

Yeah. Yashas, if you look at the total 2 million square feet that we will be delivering, you can expect an NOI of almost around 100 crores in FY27.

On the third question, see, our strategy is to fund all the capex through debt only. Now, if we look at the LTV position which we are expecting in the next one to two years, we are expecting that it will go down.

Because of two reasons: one, the GAV today doesn't factor the increase because of the deliveries of this project. Once this project gets delivered, the GAV will also increase.

See, in the long term, we expect the LTV to be around 30%. Amit, can you speak to the first question?

Just one clarification here. When do you think the projects are going to stabilize once they start contributing rent, Manyata and Splendid Techzone?

How many months, approximately?

See, after the deliveries, each of this we have given in the SD. Once the delivery happens, after this, let's say you can take six months for them to start generating the rent.

Understood. Also, on your first question, my request to the market is that please don't see quarter-on-quarter trends of leasing spreads.

My request is to see the mark-to-market potential that is there in the portfolio organically.

Understood. Thank you very much.

Good morning and thanks for taking my questions. First is on the inorganic growth that we have started seeing emerging now.

Between these third-party opportunities and sponsors' assets which keep some getting offered, what kind of opportunity we are looking at over next three, four years in terms of our portfolio addition? Are there still third-party-owned areas, if you can quantify that overall and where we have a ROFO on those third-party areas?

Other sponsor assets which are completed and might not be offered, but just broader sense on how the sponsor portfolio now stands in terms of completed portfolio, yeah? Second question on the interest rates, with this now bank channel getting open, how do you see interest rates trending forward?

Will there be a meaningful downward shift in terms of interest cost, or we are already at 7.3? Already pretty optimized on that front.

Those would be my two questions.

Right. Let me take the first question.

This is Amit here. In terms of inorganic growth, third-party acquisition as well as sponsor acquisition, like we've always maintained this, we're continuously evaluating the marketplace to look at opportunities that are actually accretive, which have similar asset quality, which match our portfolio, and we want to be in the top six cities.

Having said that, the team's building, a strong pipeline on the third-party acquisitions. With respect to the sponsor assets, we have two ROFO assets.

One is Embassy Zenith, and the other one is Embassy Concord in Whitefield. These are the two assets that we're currently evaluating, and when we are ready, we'll come back to the market.

Having said that, we are also planning to do an Analyst Day, which, will give us which will outlay the entire plan that we have in terms of acquisition, both from a third-party acquisition as well as from the sponsor assets. Sakshi will come back shortly to the market.

On your second question, Pritesh, if you look at the interest rate, what's happening is it's tightening up in the market. We are currently around 7.29, 7.3%.

Now, we think this is almost the bottom where we are. There can be, I mean you know better, there can be max one rate cut which can come in.

Hence what we are preparing is we are going for more longer-term debt, and that too fixed rate, and hence you see day our debt book is around 60% fixed. Now, what this RBI revised proposal can do is it can allow us to get more and more longer-term debt at trust level, because earlier we were only dependent on the capital market for NCDs, now banks can also participate in that, and banks, can do longer-term debts.

What it will do is there will be more liquidity in our debentures, there will be more participation in our debentures, and we can see some rate, reducing, but I don't think that it can be meaningful from here on.

Got it. Just on the first one, while obviously we can wait till the Analyst Day, but these third-party owners in our assets already in the portfolio, can you quantify some number to that?

Obviously, we won't extrapolate it that everything will be offered to us, but just trying to understand how the portfolio stands between what we own and what third party owns.

You're actually driving me to give you forward-looking statements. Probably we can pick this up separately.

No worries. Thank you.

That's it from my side. All the best.

Hi. Thanks for taking my question.

My first question is a little bit generic side in terms of some of these MNCs have been announcing these layoffs, just as recent as Amazon announcing shutting down of their AWS business last couple of weeks. Just trying to understand what are you hearings incrementally from your tenants, especially GCCs, in terms of firstly, the road map for the next 3 to 5 years, because some of these leases they're signing are really, really long-term in nature.

Just trying to understand what kind of outlook they have or road map they have in terms of job creation and, to speak, office demand for the next 3 to 5 years. That'll be my first question.

You want to talk about your second question as well, and then we'll take both together?

Yeah. My second question was more so to do with a breakdown of your distribution, right, the reconciliation from the NDCF from SPVs to the NDCF at the REIT level, there's a big dent because of the interest costs.

If you look at your overall debt levels have gone up by about 10 odd percent, 10, 15% maybe, but your debt interest cost has gone up by 33%. Incrementally when you look at your capex also, right, you spoke about 4,000 crores of incremental capex and mostly that'll be funded by debt.

When do you see this trend kind of reversing where your SPV NDCF is growing at about 18, 19%, but DPU is getting dragged because of this interest cost? When do you see that trend reversing, or DPU growth to be in line with your NDCF at the REIT level or SPV-level growth?

Sure. Let me take the first question, and then I'll hand over to Abhishek for your second question.

From an overall market perspective, like I mentioned, the market's actually been robust, and what we predict for the next two years by the industry analysts or the IPCs is that the markets will outperform this calendar year as well. The expected absorption is about 82, 83 million square feet for the next two years.

Having said that, what we're seeing is while there are cases of layoffs here and there, that is very business-specific, when businesses are migrating from one process or one technology to another technology, there will be some layoffs, there will be some productivity recalibration. Having said that, what we are actually seeing in the market is that given the fact that India has the largest or the second-largest AI talent pool and the largest data science pool, we're seeing a large number of projects of the existing occupiers also moving in this direction, and then therefore, they're doing a lot more hiring in these domains.

Now, the second trend that we've clearly seeing is a lot of mid-tier companies from the US, Australia, as well as Europe are actually coming down into India. A case in point is that we have about 18.5 million square feet of RFPs in the market floating, which we believe that, given that the US has just come out from a holiday season and there will be more RFPs, meaningful RFPs that will start floating in the market.

Given this kind of traction, given the mid-tier GCCs coming in, we're doing a lot of new leasing inquiries, inspections. Traction in the market's been really high.

We feel that for the next 2, 3 years, the market will see increased leasing velocity.

Just a follow-up on that, Amit. Do you see that the demand that we're seeing currently or FY24, '25 as a function of the kind of hiring that the tech sector did between 2020 and 2022, 2025, almost like 1.2 million square feet 1.2 million employees added during that time?

Obviously during COVID times, we saw none of these guys signed up new spaces because physical attendance was low. Do you think that was a pent-up effect of that hiring that happened between that time?

Today we are seeing that residual pent-up effect playing out. Incrementally, for us to sustain this demand going forward, we'll have to depend on new job creation that would happen over the next few years.

If you see the entire leasing, if you break it down, see, the pent-up demand that's kind of got a little bit consumed is through the IT/ITES players only, right? It's the TCS, Wipros, and Cognizant, those kind of guys who actually meaningfully came out into the market.

Having said that, a lot of other guys like Accenture, Capgemini have still not come into the market to consume that pent-up demand. Now, if you see the leasing itself, 65% of our leasing is actually GCCs, right?

20% of leasing plus is come from coworking guys. Now, the ITES actually is a very small fraction, right?

Some of these names that I've taken will continue to elevate that leasing from an ITES sector as well. That's why we're very confident about this 80 million growing to about 80, 85 million square feet over the next two years.

Sure, understood.

Kunal, on your second question, my request would be to look at the total interest at SPV and REIT level together, because we have a choice to take the loans at SPV or take the loans at REIT level and push it down to SPVs. It depends on the interest rate.

If we are getting lower interest rate in NCDs, we go for REIT loan. All of those things are there into play.

Now, if you look at the trend, what is actually happening to our interest cost is, when we are delivering, when we are constructing some assets, the interest is getting capitalized and it doesn't hit the NDCF. Now, once we deliver, the time we get the OC, the interest starts hitting the NDCF, but the income only starts getting generated after a gap of six months, and hence there is a temporary gap.

Now, this gap will continue for some time because of all the deliveries that we are doing, and every year we have plans to deliver some building or the other. This gap will continue till the time all these deliveries are finished, let's say three to four years.

Post that only you can see the interest rate doesn't go up much, commensurate to the income. Also, in this nine months, if you see, we have delivered 1.3 million square feet, the interest cost should have gone even higher, but it was not that high because of the interest saving because of the interest rate, which went down 61 basis points in the last nine months.

Hence, you see that it is also in line with the guidance that we had given.

All right, yeah. Sure.

Understood. Thank you, and all the best.

Thank you.

Thank you for the opportunity. My first question is on the new MAT provisions which were announced in the budget.

Is there any impact of that on us, and going ahead, what kind of cash tax rate should we look at? Also the second question is on the SEZ conversion.

How much have we converted till Q3? How much is still in process?

If you can help me with the occupancies in the SEZ and the non-SEZ portfolio?

Vasudev, if I have to take the first one, see, this new MAT provision is still a proposal, and we'll wait to see whether it becomes an act in the same form, because there are a lot of representations which the industry is doing. However, having said that, what we see is that for the near future, there is not much impact on the NDCF, because we were anyway which ways expecting these credits to be utilized after five, six years.

We have always guided that our tax percentage to revenue is around 5% now, which can go up to 6%. We think that for the near future, it will be still in that zip code only.

On the second one, if you look at the SEZ conversion, till date, we have been able to convert almost 8.6 million square feet. One portion, which is Parcel 6, is still under construction, if you strip that out, then we are at 84, 85% occupancy in this converted space.

Out of the total vacancy, 3.7 is in SEZ, and only 0.7 is non-SEZ vacant space. That's broad- Underway, we have about 3 million square feet of SEZ that we're trying to convert into non-SEZ, both through demarcation and denotification routes.

Sure, sir, that was very helpful. Thank you.

Thank you.

All right, guys.