Knowledge Realty Trust grows NOI 15%, DPU on track
Gross leasing of 1.4M sq ft, 25% mark-to-market, 93% committed occupancy: steady operations. Full-year DPU guidance intact despite slight construction delay.
— 2 earlier stories on Knowledge Realty Trust →What's new
- Revenue and NOI grew 15% YoY; gross leasing hit 1.4M sq ft.
- Committed occupancy at 93% but economic occupancy at 87%, gap due to staged take-up.
- DPU ₹1.70 (84% tax-free); full-year DPU expected in line with RHP.
Why this matters
The 25% portfolio mark-to-market and 93% lease escalations provide a clear NOI growth trajectory. Yet the 6-point occupancy gap and selective acquisition stance suggest near-term upside is capped until large occupiers fully take space. The call confirms operational stability but not a catalyst.
What we're watching
- Timeline for economic occupancy to close in on committed 93%.
- Delivery of 1.2M sq ft under-construction assets before FY27-end.
- Any third-party acquisition or ROFO asset monetization.
The full read
Knowledge Realty Trust's Q1 FY27 concall confirmed what the numbers already hinted at: steady execution with clear visibility on growth. Revenue and NOI grew 15% year-on-year, gross leasing hit 1.4M sq ft split evenly between new leases and renewals, and the portfolio carries a 25% mark-to-market that supports future rent resets. The 93% committed occupancy tells one story; the 87% economic occupancy tells another. Two large occupiers are taking space in stages, and until that gap closes, the headline occupancy metric overstates current income. The ₹1.70 DPU, 84% tax-exempt, keeps the yield story intact; full-year DPU guidance is unchanged from the RHP. A slight delay on 1.2M sq ft of under-construction assets means near-term supply is back-ended. This call didn't surprise. It reinforced. The trust is on track, not ahead.
Questions answered
- Why is economic occupancy lower than committed occupancy?
- Two large occupiers are staging their take-up, creating a 6-point gap (87% vs 93%). Management expects this to close as they occupy fully.
- What does the 25% mark-to-market imply for rent growth?
- It means existing rents are 25% below current market rates, offering substantial upside as leases reset. Combined with annual escalations in 93% of leases, NOI growth is structurally supported.
- How much of the DPU is tax-exempt?
- 84% of the ₹1.70 DPU is tax-exempt or tax-deferred, making it attractive for yield-seeking investors.
- What is the status of under-construction assets?
- 1.2M sq ft is under construction and expected to be delivered before the end of FY27, a slight delay from earlier expectations.
- Is Knowledge Realty Trust planning acquisitions?
- It has four ROFO assets totaling 6M sq ft but will be selective on third-party buys, focusing on Class A assets at the right price.
- How does the ₹2,000 cr debt raise approved in June affect this?
- The debt approval provides capacity for growth but wasn't a focus of this call; the trust remains disciplined on leverage with a 9.35x debt/equity ratio.
Knowledge Realty Trust
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on KRT →- 28 Jul 2026 · 4:53 PM IST Knowledge Realty Trust grows NOI 15%, DPU on track
- today Knowledge Realty Trust pays ₹1.695/unit, nearly all from cash flow
- 41d ago Knowledge Realty Trust approves ₹2,000 cr debt raise