Occupancy improves to 92%; strong leasing momentum drives growth
Knowledge Realty Trust (NSE: KRT / BSE: 544481) has reported a strong operational and financial performance for the quarter and half year ended September 30, 2025 — its first results after listing on the stock exchanges in August.
Leasing and Occupancy Trends
During the first half of FY26, the REIT achieved gross leasing of 1.8 million sq. ft., including 1.2 million sq. ft. of new leases and 0.6 million sq. ft. of renewals, at an average spread of 29%.
Portfolio occupancy increased 340 basis points year-on-year to 92%, supported by robust demand in its key markets — Hyderabad (99%), Mumbai (88%), and Bengaluru (88%). Global Capability Centres (GCCs) and domestic firms accounted for nearly 70% of total leasing activity.
Rental escalations were achieved on over 90% of leases, contributing to steady embedded growth across the portfolio.
Financial Performance
Net Operating Income (NOI) rose 20% year-on-year to ₹19,544 million for H1 FY26, with NOI margins at 89%, among the highest in the sector.
Revenue for Q2 FY26 stood at ₹11,238 million, while NOI for the quarter was ₹9,881 million.
The REIT raised ₹16,000 million through AAA-rated listed Non-Convertible Debentures (NCDs) at a 7.2% coupon, and achieved an overall reduction in interest cost to 7.4%, representing 120 basis points in savings.
Leverage remains conservative, with a loan-to-value (LTV) ratio of 18%.
Distribution and Guidance
The Board has declared the first post-listing distribution of ₹6,900 million, translating to ₹1.56 per unit for unitholders.
Shirish Godbole, CEO of Knowledge Realty Trust, said the REIT’s first results after listing reflect “strong leasing momentum and healthy operational metrics.” He added that the focus remains on delivering “sustainable growth and long-term value” to investors.
Quaiser Parvez, COO, noted that occupancy gains and consistent rental escalations highlight the portfolio’s “resilience and demand visibility across core markets.”
IPO and Capital Structure
The REIT’s IPO in August 2025 was subscribed 12 times, with strong participation from domestic insurance and pension funds.
The issue raised ₹62 billion (₹14 billion pre-IPO and ₹48 billion through the IPO), which was primarily used to repay ₹60 billion of debt, reducing LTV from 31% to 18%.
Investor Call and Materials
Knowledge Realty Trust has released its Q2 FY26 earnings presentation and related materials on its Investor Relations website www.knowledgerealtytrust.com.
A conference call with investors will be held on Monday, November 10, 2025, at 4:00 PM IST, and a replay will be available online.
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