Knowledge Realty Trust reported a 15% year-on-year revenue increase for the June quarter, supported by a 93% occupancy rate. The REIT also announced a 5% sequential rise in distribution per unit to ₹1.70. Investors may note the company’s shift toward fixed-rate debt and strong leasing activity in its Mumbai portfolio.
Detailed Coverage
Knowledge Realty Trust (REIT) reported a steady start to the financial year, with revenue reaching ₹1,243.1 crore and net operating income (NOI) hitting ₹1,111.7 crore for the June 2026 quarter. Both metrics represent a 15% increase compared to the same period last year. Following these results, the REIT declared a distribution per unit (DPU) of ₹1.70, reflecting a 5% increase over the previous quarter.
Leasing Growth and Occupancy Trends
The trust saw its portfolio occupancy improve to 93%, an increase of 100 basis points from the previous quarter. During this period, the company completed 1.4 million square feet of gross leasing. A key driver was demand from front-office occupiers, which accounted for more than half of the new leasing activity. The portfolio also benefited from high retention, as existing tenants expanding their operations contributed 58% of the new lease volume.
Performance in the Mumbai market was a notable highlight. Occupancy for the Mumbai portfolio rose to 92%, while the central Mumbai segment recorded a 1,400 basis point improvement since March 2025, reaching 93% occupancy. The REIT also reported strong rental dynamics, securing a 35% leasing spread on new deals and 29% on renewals. Furthermore, 93% of these transactions include built-in annual rental escalations, which help protect income against inflation.
Debt Management and Capital Strategy
To manage its financial profile, the REIT raised ₹1,100 crore in debt during the quarter at a blended interest rate of 7.2% per annum. The management has shifted toward more stable borrowing, with 30% of its total debt now at fixed interest rates, compared to none at the time of its listing last year.
With a loan-to-value ratio of 18%, the company maintains a conservative level of debt, which may provide flexibility for future growth or property acquisitions. As the office real estate sector sees sustained demand for high-quality spaces, investors should monitor the company’s ability to maintain high occupancy levels and its effectiveness in managing rental escalations across the portfolio. The next major updates to follow include future property acquisitions and the impact of interest rate cycles on the cost of the remaining variable-rate debt.