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Knowledge Realty Trust, India's largest listed office REIT, reported strong results for the quarter and half-year ended September 2025 its first since debuting on the NSE and BSE. The trust recorded gross leasing of 1.8 million sq ft in H1 FY26, with 1.2 million sq ft of new leases and 0.6 million sq ft of renewals, driving portfolio occupancy up to 92%. Net Operating Income rose 20% year-on-year to INR 19,544 million with record 89% margins. It also raised INR 16,000 million via AAA-rated NCDs at 7.2%, cutting borrowing costs to 7.4%. CEO Shirish Godbole announced a first distribution of INR 6,900 million, while COO Quaiser Parvez highlighted continued leasing momentum driven by GCC and domestic demand. Strong occupancy, low leverage (18% LTV), and robust funding position the REIT for sustained growth and unitholder value.
Knowledge Realty Trust announced its quarterly and half-yearly financial results for the period ended September 2025, marking its first reporting cycle since listing on the NSE and BSE earlier this year. The REIT, recognised as India's largest and most geographically diverse office trust, recorded gross leasing of 1.8 million sq ft in the first half of FY26. This included 1.2 million sq ft of new leases and 0.6 million sq ft of renewals, averaging a healthy spread of 29%. Advertisement
With strong leasing momentum, the portfolio's occupancy rose 340 basis points year-on-year to reach 92%. Core markets continued to demonstrate strength, with Hyderabad recording 99% occupancy, while Mumbai and Bengaluru both stood at 88%. Global Capability Centres (GCCs) and domestic enterprises accounted for approximately 70% of the total leasing activity during the first half of the fiscal year.
The company maintained its strategic focus on embedded growth by achieving annual rental escalations on more than 90% of its leasing portfolio. Financially, Knowledge Realty Trust reported a 20% year-on-year increase in Net Operating Income to INR 19,544 million for H1 FY26, with NOI margins at a record 89%. Quarterly revenue stood at INR 11,238 million and quarterly NOI at INR 9,881 million.
The REIT successfully raised INR 16,000 million through AAA-rated listed Non-Convertible Debentures (NCDs) at a competitive coupon rate of 7.2%. Refinancing initiatives and rate reductions brought the average interest cost down to 7.4% per annum, translating into annual savings of 120 basis points. With a low LTV ratio of 18%, the company stated that it retains significant headroom for future growth.
Chief Executive Officer Shirish Godbole remarked that the company's IPO earlier this year marked a milestone for both the firm and India's REIT ecosystem. He added that KRT recorded revenue growth of 17% year-on-year and NOI growth of 20% year-on-year, with industry-leading margins, while announcing its first distribution of INR 6,900 million.
Chief Operating Officer Quaiser Parvez noted that the first half of FY26 witnessed strong momentum in leasing and occupancy, primarily driven by GCCs and domestic corporate demand. He emphasised that the company's high-quality Grade-A portfolio positions it well for sustainable long-term value creation for its unitholders.
During its IPO, the trust saw a twelvefold oversubscription, driven by robust participation from domestic insurance and pension funds. The entire issue comprised primary capital, with no offer for sale. The total capital raised amounted to INR 62 billion, of which INR 48 billion came from the IPO and INR 14 billion was secured pre-listing. Proceeds were largely allocated to debt repayment, reducing the LTV ratio from 31% prior to listing to 18%.
The REIT released detailed investor materials, including its earnings presentation for Q2 FY26, and announced that its investor conference call would be held later this week to discuss the half-year results.
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