Dear Unitholders,

While the events we are living through today would have seemed inconceivable a few months ago, here we are in the middle of a global pandemic that has inflicted a very real cost on society and businesses globally. I hope that each one of you and your families are safe. And on behalf of Embassy REIT, I sincerely thank all the first responders in our cities and properties across India for their heroic efforts in keeping us safe.

I am very pleased to present to you Embassy REIT’s first annual report. Our full year results delivered on the expectations we set when the REIT listed in April 2019. Embassy REIT has performed strongly in its first year since listing: the REIT delivered c.2.4 msf of new leasing, distributed `18.8 billion (c.$250 million) and returned c.25% in total returns to Unitholders.

This performance is a testament to the quality of the REIT structure and world-class properties in Embassy REIT, a dedicated and exceptional management team, and the strategic vision and partnership between two sponsors who believe in the potential and resiliency of commercial real estate here in India.

While the near-term outlook might appear cloudy and occupier needs may vary given the pressures on their businesses, I believe the foundations of Indian office demand continue to remain strong for the years to come for the following reasons:

• First, India is a young country with a graduate population that represents a world-class workforce. Our graduates are highly educated, they are analytical, and they aspire for career mobility. Global corporations hire talent in India for these skill sets. Every aspect of the global technology landscape has a foothold in this country because of the ability of the Indian technology professional to deliver quality. As technology becomes more sophisticated, the demand for Indian talent by global corporates will only grow.
• Second, Indian real estate offers significant cost arbitrage without compromising quality. Rents that multinationals pay in India are a fraction of the global rents they pay overseas, but the quality and scale of assets like Embassy REIT’s are truly irreplaceable. To be able to hire skilled technology talent at scale to respond to the needs of global businesses is the core reason multinationals have been operating from our business parks and properties for over a decade. To deliver this talent in a cost-competitive manner makes India unique, because India delivers a winning combination of talent and cost.
• And third, Embassy REIT remains the preferred institutional landlord for global corporations to further their business objectives. Embassy REIT owns a world-class office portfolio, has enhanced its reputation over time, and developed a track record of fulfilling occupiers’ business needs through our ‘total business ecosystem’ offering. Our occupier base speaks for itself: approximately 80% of our occupier base is international.

Given the demand for Indian talent and the paucity of high-quality landlords and premises, Embassy REIT is well positioned in the coming years. It represents the best of listed commercial estate with robust governance standards, best‑in-class management team, prudent capital management and the ability to deliver regular distributions to Unitholders.

I am grateful to our partners at Blackstone, the regulators, and various stakeholders, as well as the guidance of my fellow Board members as we have navigated a highly successful year. We are grateful to the management team and all employees for their diligence and execution throughout the year to deliver on the potential of the REIT. Most importantly, we thank all our Unitholders who have supported us in our inaugural year as a listed entity.

We look forward to your continued support

Jitendra Virwani