Knowledge Realty Trust Q2 operating income surges 20% YoY; declares ₹690 crore distribution

Knowledge Realty Trust, a diversified office real estate investment trust (REIT), reported a 20% year-on-year (YoY) rise in net operating income (NOI) to ₹1,954.4 crore for the first half of FY26, with margins touching a record 89%. Revenue for the period ended September 30 stood at ₹2,201.9 crore, up 17% from a year earlier.

For Q2FY26, revenue came in at ₹1,123.8 crore and NOI at ₹988.1 crore. The REIT declared its first post-listing distribution of ₹690 crore, or ₹1.56 per unit.

Leasing momentum remained strong, with 1.8 million sq. ft. of gross leasing in H1, including 1.2 million sq. ft. of new deals and 0.6 million sq. ft. of renewals coming at an average spread of 29%.

Portfolio occupancy rose 340 basis points year-on-year to 92%, led by Hyderabad (99%), Mumbai (88%), and Bengaluru (88%).

Global capability centers (GCCs) and domestic companies drove around 70% of total leasing activity during the half-year.

Annual rental escalations were achieved on over 90% of leases.

On the financing front, Knowledge Realty Trust raised ₹1,600 crore through AAA-rated listed non-convertible debentures at a coupon of 7.2%.

Debt refinancing and lower rates brought the average interest cost down to 7.4% per annum, saving about 120 basis points annually. The REIT’s loan-to-value ratio stood at a conservative 18%.

“Our IPO in August 2025 was a major milestone for KRT and India’s REIT market,” said CEO Shirish Godbole. “We’re pleased to deliver robust maiden results with strong growth in revenue and NOI.”

COO Quaiser Parvez said leasing demand from GCCs and domestic firms continued to underpin occupancy gains across key markets.

Co-sponsored by Sattva and Blackstone, Knowledge Realty Trust’s portfolio spans 46.4 million sq. ft. across six cities, including 37.1 million sq. ft. of completed space, 1.2 million sq. ft. under construction, and 8 million sq. ft. in future development.

(Edited by : Ajay Vaishnav)