News ArticleKnowledge Realty Trust Reports 13% Revenue Growth and Record Rs. 7,640 Million Distributions in Q2 FY27
Portfolio occupancy at 93%, with 0.8 million sqft gross leasing and NOI margin expanding to 90% for the quarter ended September 30, 2026
Knowledge Realty Trust, India's largest office REIT, announced Q2 FY27 financial results with revenue up 13% YoY to Rs. 12,725 million and net operating income up 15% YoY to Rs. 11,404 million. The trust declared record distributions of Rs. 7,640 million, an 11% increase YoY, with portfolio occupancy at 93% area-wise and a gross leasing of 0.8 million square feet in the quarter.
Knowledge Realty Trust
General / Other
Knowledge Realty Trust, India’s largest office REIT, posted a 13% year-over-year revenue increase to Rs. 12,725 million and a 15% rise in net operating income to Rs. 11,404 million for Q2 FY27. The trust declared record distributions totaling Rs. 7,640 million, up 11% compared to the prior year, with portfolio occupancy at 93% on an area basis and strong leasing activity in the quarter.
The trust achieved gross leasing of 0.8 million square feet in the quarter, including 0.2 million square feet through pre-leasing, with cumulative leasing for the first half of FY27 reaching 2.2 million square feet.
Committed occupancy stands at 93% by area and 94% by value, with the Mumbai portfolio occupancy rising to 95%, up 300 basis points quarter-on-quarter and 600 basis points since March 2026.
Average spreads on leasing during the quarter were 24%, with in-place rents growing 7% year-over-year to Rs. 101 per square foot per month.
Leasing in Mumbai showed a 28% spread on 0.6 million square feet of re-leased and renewed space since March 2026, while the proactive lease churn in Hyderabad resulted in a 41% gross rental spread on about 0.6 million square feet re-pricing since listing.
Expansions by existing tenants accounted for 54% of leasing in the quarter, demonstrating tenant satisfaction and encouraging long-term relationships. All leasing came with annual escalations and the weighted average mark-to-market potential is 25% until FY30.
Highlights
- Revenue grew 13% year-over-year to Rs. 12,725 million in Q2 FY27.
- Net Operating Income increased 15% year-over-year to Rs. 11,404 million.
- Record distributions of Rs. 7,640 million declared, up 11% YoY, translating to Rs. 1.72 per unit DPU.
- Portfolio occupancy at 93% on area basis and 94% on value basis.
- Leased 0.8 million square feet in Q2 FY27, with 0.2 million square feet pre-leased.
- Mumbai portfolio occupancy increased to 95%, up 300 basis points quarter-on-quarter.
Key Data Snapshot
What happened
- Knowledge Realty Trust delivered a 13% year-over-year revenue increase to Rs. 12,725 million in Q2 FY27 and a 15% increase in net operating income to Rs. 11,404 million.
- Record distributions of Rs. 7,640 million were declared, translating to a distribution per unit of Rs. 1.72, an 11% increase over the prior year.
- The portfolio achieved a committed occupancy of 93% by area and 94% by value.
- The trust achieved gross leasing of 0.8 million square feet in the quarter, including 0.2 million square feet of pre-leasing.
- Mumbai’s portfolio occupancy rose to 95%, a 300 basis points increase quarter-on-quarter.
- Achieved a weighted average mark-to-market rental escalation potential of 25% until FY30.
Key details
- Leasing activity was supported by 54% expansions from existing tenants in the quarter, indicating strong occupier satisfaction.
- 100% of leasing in the quarter included annual escalations.
- Front office demand was a significant driver for Mumbai portfolio's occupancy increase.
- Hyderabad saw proactive lease churn and re-pricing of about 0.6 million square feet at a 41% gross rental spread since listing.
- The portfolio comprises 29 Grade-A office assets totaling 46.5 million square feet across six cities in India.
- Gross Asset Value (GAV) stood at Rs. 688,631 million as of September 30, 2026, with a NAV of Rs. 127 per unit.
Regulatory and governance context
- Knowledge Realty Trust is co-sponsored by Sattva Developers Private Limited and BREP Asia SG L&T Holding (NQ) Pte. Ltd.
- The REIT is India's largest by market capitalization as of October 30, 2026.
- The trust maintains a Loan-to-Value (LTV) ratio of 18%, suggesting room for value-accretive acquisition opportunities.
Next milestones
- Knowledge Realty Trust will host a conference call on November 3, 2026, at 17:30 IST to discuss Q2 and H1 FY27 results.
- A replay of the call and detailed presentation materials are available on the company's investor relations website.
Highlights
- Revenue grew 13% year-over-year to Rs. 12,725 million in Q2 FY27.
- Net Operating Income increased 15% year-over-year to Rs. 11,404 million.
- Record distributions of Rs. 7,640 million declared, up 11% YoY, translating to Rs. 1.72 per unit DPU.
- Portfolio occupancy at 93% on area basis and 94% on value basis.
- Leased 0.8 million square feet in Q2 FY27, with 0.2 million square feet pre-leased.
- Mumbai portfolio occupancy increased to 95%, up 300 basis points quarter-on-quarter.
Disclosures
- Compliance under REIT regulations as per Registration No.: IN/REIT/24-25/0006
Co-sponsored by Sattva Developers Private Limited and BREP Asia SG L&T Holding (NQ) Pte. Ltd.
Source Information
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