EMBASSY OFFICE PARKS REIT Q2 CONCALL: FY27 DPU GUIDANCE OF ₹27–28.6, NOI TARGET UP TO ₹4,350 CR, 92–93% OCCUPANCY TARGET, STRONG GCC LEASING & RECORD DISTRIBUTIONS

• Management maintained FY27 distribution per unit guidance of ₹27–28.6, supported by office leasing, rental growth, new asset contributions and operating performance. • Management expects approximately 10% YoY distribution per unit growth at the midpoint of its FY27 guidance. • Management reiterated FY27 net operating income guidance of approximately ₹4,150–4,350 Cr, although the lower end of the range requires verification due to a transcription inconsistency. • Management expects approximately 13% YoY NOI growth at the midpoint of its FY27 guidance. • Management expressed confidence in achieving its annual financial targets following H1 FY27 performance. • Management targets portfolio occupancy of approximately 92–93% by FY27-end, including the Pune portfolio. • Management expects occupancy improvement to be supported by new leasing, pre-leasing conversions, GCC expansion and gradual recovery in Pune. • Management expects continued healthy office leasing demand, particularly from global capability centres expanding operations in India. • Management expects Bengaluru to remain a major contributor to office leasing, supported by demand from engineering, technology and multinational corporate tenants. • Management expects Pune leasing activity to improve gradually, particularly around Hinjawadi, supported by occupier demand and improving metro connectivity. • Management indicated that occupancy outside Pune is already at least 94% across its major cities. • Management expects portfolio market rents to continue increasing, supported by strong demand and limited availability of high-quality office space in key locations. • Management sees potential rental growth of approximately 5–10% across major office markets. • Management expects particularly healthy demand in Bengaluru, Mumbai and selected Hyderabad locations. • Management expects rental mark-to-market opportunities as older leases expire and are renewed or replaced at higher prevailing market rents. • Management expects GCCs to remain a structural driver of office demand despite AI adoption, automation and corporate workforce restructuring. • Management believes AI-driven productivity and GCC expansion can coexist because companies are transferring higher-value engineering, research and business functions to India. • Management highlighted industry research projecting approximately 390 million sq. ft. of GCC-occupied office space in India by FY31. • The cited industry research projects approximately 11% CAGR in GCC office area, although this is not Embassy REIT's own leasing guidance. • The research discussed during the call expects approximately 80% of GCC headcount growth to come from expansion of existing centres. • The cited research also projects more than 120 new GCCs annually and an AI-skilled workforce of approximately 0.8–0.9 million by FY31. • Management expects continued demand from existing GCC tenants expanding their office footprints within established business parks. • Management highlighted an active leasing pipeline of approximately 1.4 million sq. ft., providing visibility for future occupancy improvement. • Management expects new leasing and pre-leasing activity to support future rental income as contracted space becomes operational. • Management indicated that rent-free periods and commencement schedules may create timing differences between lease signing and cash rental realization. • Management expects the development pipeline to support rental income growth over the medium term. • The REIT has a total development pipeline of approximately 5.6 million sq. ft. • Management plans to deliver approximately 2.3 million sq. ft. of development space over the next two years. • Approximately 67% of the upcoming development deliveries are pre-leased, including tenant expansion options. • Management expects pre-leased development space to provide future rental visibility, subject to construction completion and lease commencement. • Management confirmed completion of approximately 0.6 million sq. ft. at Embassy Splendid Tech Zone in Chennai. • The completed Chennai office building received its occupancy certificate and was handed over to a US corporate tenant for GCC operations. • Management expects cash rental income from the completed Chennai building to commence in the following financial year. • Management plans to launch a 318-key Hilton hotel at Embassy Tech Village during FY27. • Management expects the new Hilton hotel to expand the hospitality portfolio and contribute after operational ramp-up. • Management continues to evaluate selective, value-accretive acquisitions to strengthen the portfolio. • Management indicated that the REIT acquired approximately 8,048 sq. ft. of fully leased retail space at FIFC in Mumbai. • Management expects FY27 interest expense to increase approximately 11–13% YoY, reflecting borrowing costs and the existing debt structure. • Management indicated that the interest expense guidance considers the possibility of one or two additional 25 basis point rate increases. • Management estimated that a 25 basis point increase in floating borrowing rates could raise annual interest costs by approximately ₹20 Cr. • Management expects leverage to remain around 30% in the near term. • Management has a longer-term ambition to reduce leverage toward approximately 28–29% around FY29. • Management expects recurring annual cash tax savings of approximately ₹120–130 Cr following changes in tax regulations. • Management expects cash tax expense to remain around 5% of revenue over the next one to two years, compared with an earlier expectation closer to 6%. • Management indicated that reduced MAT liabilities and lower tax rates across special purpose vehicles should support cash flow. • Management did not separately quantify the incremental distribution per unit benefit from expected cash tax savings. • Management remains attentive to interest-rate movements because higher borrowing costs could affect distributions and financing flexibility. • Management acknowledged that capitalization-rate expansion could create pressure on property valuations. • Q2 FY27 revenue increased approximately 16% YoY to ₹1,303 Cr, supported by leasing activity, rental growth and new asset contributions. • Q2 net operating income increased approximately 15% YoY to ₹1,069 Cr. • The calculated NOI margin stood at approximately 82%, reflecting the income-generating characteristics of the property portfolio. • The REIT declared its highest-ever quarterly distribution of ₹670 Cr. • Distribution per unit stood at ₹7.07, representing approximately 9% YoY growth. • Gross asset value increased approximately 16% YoY to ₹73,990 Cr. • Net asset value per unit increased approximately 18% YoY to ₹524.74. • Total office leasing during Q2 FY27 reached approximately 1.5 million sq. ft. • New leasing accounted for approximately 0.9 million sq. ft. of quarterly leasing activity. • Lease renewals contributed approximately 0.1 million sq. ft. • Pre-leasing contributed approximately 0.5 million sq. ft. • A complete 0.5 million sq. ft. building at Embassy Tech Village in Bengaluru was pre-leased to an existing global engineering tenant expanding its operations. • Management indicated that the flagship Embassy Tech Village pre-lease achieved approximately a 15% premium to prevailing market rents. • New leases across the portfolio were signed at an average premium of approximately 9% to market rents. • GCC tenants contributed approximately 85% of total leasing activity during Q2 FY27. • Overall portfolio occupancy stood at approximately 90%, compared with management's FY27 exit target of 92–93%. • Portfolio market rent stood at approximately ₹106 per sq. ft., representing approximately 8% YoY growth. • Blended market rent at Embassy Manyata and Embassy Tech Village stood at approximately ₹107 per sq. ft. • Recent transactions at Manyata and Embassy Tech Village achieved rents of approximately ₹115–130 per sq. ft. • Management indicated that higher achieved leasing rates demonstrate potential for future rental mark-to-market gains. • Pune leasing improved, with more than 0.2 million sq. ft. leased across three assets. • Pune contributed approximately 25% of new leasing during Q2 FY27. • Management indicated that Pune occupancy improved approximately 300 basis points sequentially, although the machine-generated transcript contains a conflicting reference to 30 basis points. • Management highlighted improving demand around Hinjawadi, with GCCs remaining the principal occupier category. • The wider Pune market also experienced participation from flex-space operators and domestic corporate tenants. • Hotel portfolio revenue increased approximately 22% YoY during Q2 FY27. • Hotel portfolio occupancy stood at approximately 58%. • Blended hotel average daily rate stood at approximately ₹13,500. • The recently delivered Hilton Garden Inn at Embassy Tech Village achieved operating cash breakeven during the quarter. • Four Seasons hotel EBITDA was affected by a one-time fee, with management indicating that underlying performance excluding this charge remained broadly in line with the prior half-year. • Net debt stood at approximately ₹22,389 Cr at the end of Q2 FY27. • The leverage ratio stood at approximately 30%. • The in-place cost of borrowing stood at approximately 7.33%. • The REIT raised approximately ₹2,050 Cr of new debt during Q2 at a blended interest rate of approximately 7.14%. • The company issued ₹1,000 Cr of three-year floating-rate non-convertible debentures subscribed by a multinational bank. • The floating-rate NCD issuance carried an initial coupon of approximately 6.97%. • Approximately 57% of the debt portfolio was fixed-rate, providing partial protection against future interest-rate increases. • The company recognized approximately ₹594 Cr of minimum alternate tax credits, supporting its future cash tax position. • Key risks include rising interest rates, refinancing exposure, capitalization-rate expansion and potential pressure on asset valuations. • Additional risks include slower Pune occupancy recovery, delays between lease signing and cash rent commencement, GCC workforce rationalization and development execution delays. • Hospitality-related risks include new hotel ramp-up, occupancy fluctuations and one-time operating expenses. • Overall outlook remains positive, supported by strong leasing demand, healthy rental growth, record distributions, improving Pune occupancy and a substantial development pipeline. • Key FY27 monitorables include achieving 92–93% portfolio occupancy, maintaining DPU guidance of ₹27–28.6, delivering planned developments and converting pre-leased space into cash rental income. • Interest expense growth of 11–13%, leverage around 30%, cash tax savings and future acquisition decisions will remain important factors affecting distribution sustainability. • The supplied machine-generated transcript contains inconsistencies in the FY27 NOI guidance range and Pune occupancy improvement figures. These should be verified against official company disclosures before investment use.

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