Knowledge Realty Trust (KRT), India’s largest and most geographically diversified office Real Estate Investment Trust (REIT), has reported a strong operating and financial performance for the third quarter of FY26, reflecting sustained leasing momentum, improving balance sheet metrics, and rising investor confidence.
For the quarter ended December 31, 2025, revenue rose 21% year-on-year to ₹11,787 million, while Net Operating Income (NOI) increased 19% YoY to ₹10,407 million. The REIT also declared robust distributions of ₹6,953 million, translating to ₹1.57 per unit.
Leasing Momentum Remains Strong
KRT continued to see healthy demand across its portfolio during Q3 FY26, leasing 0.6 million square feet during the quarter. This took cumulative leasing for the first nine months of FY26 to 2.4 million square feet, underscoring consistent occupier interest.
Portfolio occupancy stood at 92%, supported by a strong leasing pipeline that management says reinforces confidence in sustained business momentum.
A notable trend during the year has been expansion by existing tenants, which accounted for over half of year-to-date leasing. This reflects strong tenant satisfaction and long-term relationships across KRT’s Grade-A office assets.
The REIT has also maintained a disciplined focus on rental growth, with over 90% of YTD leasing carrying built-in annual escalations, strengthening future income visibility. Additionally, KRT reported an embedded mark-to-market potential of 22%, supported by a well-phased lease expiry profile.
Improving Balance Sheet and Cost of Debt
On the financial front, Knowledge Realty Trust continued to strengthen its balance sheet:
- Average cost of debt reduced by ~19 basis points, from 7.44% in September 2025 to 7.25% in December 2025
- Reduction driven by repayment of high-cost debt and benefit from repo rate cuts
- Loan-to-Value (LTV) remains low at 18%, providing significant headroom for future inorganic growth
The REIT’s conservative leverage and improving funding costs position it well amid evolving interest rate conditions.
Growing Global Recognition and Investor Base
December 2025 marked an important milestone for KRT, as it was included in the FTSE EPRA Nareit Global REITs Index, enhancing its global visibility among institutional investors.
The REIT also reported broadening participation across investor categories, with its unitholder base doubling since listing, signalling rising confidence in India’s office REIT story.
Management Commentary
Commenting on the results, Shirish Godbole, Chief Executive Officer, said the trust delivered strong operating performance and healthy distributions during the quarter.
He highlighted the inclusion in the FTSE EPRA Nareit index as a sign of growing global recognition and noted that KRT enters the final quarter of FY26 with strong momentum, a resilient balance sheet, and visible growth levers.
Quaiser Parvez, Chief Operating Officer, said leasing during Q3 was driven largely by expansions from marquee tenants, resulting in strong revenue growth. He added that cumulative leasing of 2.4 million square feet at an average spread of 25% reflects robust demand from both global and domestic occupiers.
According to management, KRT’s portfolio—concentrated in India’s strongest office markets—positions the REIT well to deliver sustainable long-term growth for unitholders.
Investor Interaction
Knowledge Realty Trust has released its detailed earnings presentation and related investor materials on its website. The REIT is also hosting an investor conference call on February 5, 2026, to discuss Q3 FY26 performance, with a replay to be made available subsequently.
Also Read: Knowledge Realty Trust Reports 20% Rise in NOI, Declares ₹6,900 Million Distribution in Q2 FY26
