NEW DELHI: Knowledge Realty Trust reported a 15% year-on-year revenue increase to ₹1,243.10 crore for the quarter ending June 30, 2026. Its net operating income also rose by 15%, reaching ₹1,111.70 crore.
The total net consolidated income amounted to ₹1,268.14 crore for Q1 FY27, with a net consolidated profit after tax of ₹250.79 crore.
The board of directors at Knowledge Realty Office Management Services, responsible for managing Knowledge Realty Trust, has approved a distribution of ₹751.63 crore, translating to ₹1.695 per unit for the quarter.
This distribution includes ₹408.85 crore (₹0.922 per unit) as dividends, ₹123.28 crore (₹0.278 per unit) as interest, ₹219.06 crore (₹0.494 per unit) from debt repayment, and ₹0.44 crore (₹0.001 per unit) as other income.
Approximately 84% of the distribution is tax-efficient for unitholders, with a sequential increase of 5% compared to the previous quarter.
Portfolio occupancy improved by 100 basis points to 93%, aided by gross leasing of 1.4 million sq. ft., consisting of approximately 0.7 million sq. ft. from new leases and 0.7 million sq. ft. from renewals.
Front-office occupiers accounted for over half of the gross leasing during the quarter, with existing tenants driving 58% of new leases.
The REIT achieved an average spread of 35% on new leases and 29% on renewals, with over 93% of the leasing showing annual rent escalations.
Shirish Godbole, CEO, expressed satisfaction with the strong start to FY27, noting the 15% year-on-year growth in both revenue and NOI, alongside a portfolio occupancy increase driven by robust front-office demand.
Occupancy in the Mumbai portfolio rose by 300 basis points to 92%, while the Central Mumbai portfolio reached 93%, marking a remarkable increase of 1,400 basis points since March 2025.
The portfolio has a weighted average lease expiry (WALE) of 7.9 years, with leases typically featuring annual rent escalations of 5% or 15% every three years.
Knowledge Realty Trust anticipates a mark-to-market potential of 25% across its portfolio, with in-place rent at ₹99 per sq. ft. compared to an estimated market rent of ₹124 per sq. ft.
About 58% of its total lease expiries for FY27 have already been renewed at a spread of 25%. The expected average mark-to-market potential for future expiries through FY30 is estimated at 26%.
Currently, there are approximately 2.8 million sq. ft. of vacant space available for leasing, with another 2.6 million sq. ft. under construction and a future development pipeline of 6.6 million sq. ft.
The REIT also maintains a right-of-first-offer pipeline of roughly 6.7 million sq. ft. across four assets, offering potential for portfolio expansion.
During the quarter, it raised ₹1,100 crore in debt at a blended rate of 7.2%. Fixed-rate borrowings now represent 30% of its overall debt, compared to none at the time of listing.
The REIT’s net debt is approximately ₹12,100 crore, with a loan-to-value ratio at 18%. It has received AAA/Stable ratings from CRISIL and ICRA.
