Knowledge Realty Trust Reports Strong Q2 Performance with 20% NOI Growth
Knowledge Realty Trust, India's largest REIT by market cap, reported robust Q2 FY2026 results. Revenue reached Rs. 2,202.00 crores with 20% year-on-year NOI growth and 89% NOI margin. The REIT announced its first distribution of Rs. 1.56 per unit. Portfolio occupancy improved to 92%, with 1.8 million sq ft gross leasing in H1 FY2026. Debt leverage reduced from 31% to 18%, and Rs. 1,600.00 crores raised through AAA-rated debentures at 7.2% coupon rate. The stock has appreciated by over 18% since listing in August 2025. The REIT's future outlook includes mark-to-market potential, near-completion of under-construction assets, and ROFO assets from its sponsor.
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Knowledge Realty Trust , India's largest REIT by market capitalization, has reported robust financial results for the second quarter of fiscal year 2026, marking a strong debut since its listing in August 2025.
Financial Highlights
The REIT delivered impressive quarterly results, with revenue reaching Rs. 2,202.00 crores and Net Operating Income (NOI) growth of 20% year-on-year. The NOI margin stood at a healthy 89%, reflecting the REIT's operational efficiency.
Distribution Announcement
Knowledge Realty Trust announced its first distribution of Rs. 1.56 per unit. This distribution is derived from a Net Distributable Cash Flow (NDCF) of Rs. 690.00 crores, demonstrating the REIT's commitment to delivering value to its investors.
Occupancy and Leasing Performance
The REIT achieved a strong portfolio occupancy of 92%, up from 88.6% in the previous year. This improvement was driven by successful gross leasing of 1.8 million square feet during the first half of FY2026. The management expects to reach 94% occupancy by the end of the fiscal year.
Debt Management and Financial Position
Knowledge Realty Trust has strategically managed its debt profile, reducing leverage from 31% to 18% using IPO proceeds. The REIT successfully raised Rs. 1,600.00 crores through AAA-rated listed non-convertible debentures at a competitive coupon rate of 7.2%. Overall, the REIT's cost of debt has decreased to 7.4%, resulting in a 120 basis points reduction in interest expenses.
Market Performance
Since its listing in August, Knowledge Realty Trust's stock has appreciated by over 18%, reflecting investor confidence in the REIT's portfolio and management.
Future Outlook
The REIT is well-positioned for growth, with multiple levers at its disposal:
- A mark-to-market potential of 22% on its existing leases
- 1.2 million square feet of under-construction assets nearing completion
- 6.7 million square feet of Right of First Offer (ROFO) assets from its sponsor
- Potential for inorganic growth through acquisitions, leveraging its low loan-to-value ratio
Management Commentary
Shirish Godbole, CEO of Knowledge Realty Trust, stated, "We are delighted to report a strong and steady start to our journey as a publicly listed entity. Our focus on delivering sustainable and long-term returns is evident in our robust financial performance and strategic initiatives."
Quaiser Parvez, COO, added, "Our leasing momentum continues to be underpinned by strong re-leasing spreads and client confidence across key assets. We are seeing continued demand from both Global Capability Centers (GCCs) and domestic occupiers."
Knowledge Realty Trust's strong performance in Q2 FY2026 sets a positive tone for its future growth and reinforces its position as a leading player in India's REIT market.
Historical Stock Returns for Knowledge Realty Trust
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.42% | +1.57% | +3.71% | +12.45% | +12.45% | +12.45% |
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