Knowledge Realty Trust leases over 3.5 million sq ft in FY26

MUMBAI: Listed Real Estate Investment Trust (REIT) Knowledge Realty Trust leased over 3.5 million sq ft office space during the financial year 2025-26, driven by robust demand from global and domestic occupiers.

Of this, over 1.1 million sq ft leasing was witnessed during the January-March quarter. Expansions by existing tenants contributed 56% of leasing completed during the year, helping push portfolio occupancy to 92%.

The office REIT reported a 16% year-on-year increase in revenue to Rs 4,577.2 crore and an 18% rise in net operating income (NOI) to Rs 4,048.4 crore for the financial year. Net operating income margin stood at 88%.


“We achieved cumulative leasing of 3.5 million sq ft for the year at an average spread of 26% driven by global and domestic occupiers. With an AI resilient portfolio representing one of India’s finest Grade-A office ecosystems, concentrated in the strongest markets of the country, we are well positioned to deliver sustainable growth to our unitholders,” said Quaiser Parvez, COO, Knowledge Realty Trust.

The company declared distributions of Rs 716.6 crore, or Rs 1.62 per unit, for the fourth quarter, taking cumulative distributions since its listing in August 2025 to Rs 2,101.9 crore, or Rs 4.74 per unit.

“Encouragingly, we continue to see broadening participation across investor classes, with our unitholder base more than doubling since listing. We enter FY27 with strong operating momentum, a resilient balance sheet and multiple visible growth levers,” said Shirish Godbole, CEO, Knowledge Realty Trust.

In-place rents increased 7% year-on-year during the year, while leasing spreads stood at 26%. Rentals achieved on new leasing were at a 5% premium to market rents, the REIT said.

Over 45% of its gross rentals come from global capability centre (GCC) occupiers, while it has lower exposure to the traditional IT services sector. Around 31% of the portfolio value is concentrated in front-office assets, the REIT added.

Demand for front-office spaces helped occupancy in its Central Mumbai portfolio increase 10% year-on-year, while rentals achieved for leasing during the year rose 27%.

Knowledge Realty Trust said over 87% of leases signed during the year carried annual escalation clauses. The REIT also cited a mark-to-market rental potential of 25%, supported by a staggered lease expiry profile.

On the development side, the company commenced construction of a new 1.4 million sq ft office block at Sattva Global City in Bengaluru, in addition to an existing under-construction portfolio of 1.2 million sq ft.

The REIT raised debt worth Rs 4,200 crore during FY26 at a blended cost of 7.3%. According to the company, replacement of high-cost borrowings, rate renegotiations and interest rate cuts helped reduce its overall cost of debt from 8.6% to 7.2% during the year. Its loan-to-value ratio stood at 18%, providing headroom for acquisitions and portfolio expansion.