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

The post Knowledge Realty Trust Posts Strong Q3 FY26 Results; Revenue Jumps 21%, Distributions at ₹6,953 Million appeared first on Square Feat India.

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.

Also Read: Data Benchmarking Institutions Launched to Empower Indian REIT Investors

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