REIT Leases 3.5M Sq Ft Office Space Amid Demand Surge

Knowledge Realty Trust, a listed Real Estate Investment Trust, successfully leased over 3.5 million sq ft of office space during the financial year 2025-26. This significant achievement was propelled by strong demand from both global and domestic occupiers, with existing tenants contributing substantially through expansions. As a result, the REIT's portfolio occupancy climbed to 92% by the end of the fiscal year.

The REIT experienced substantial financial growth, with revenue increasing by 16% year-on-year to Rs 4,577.2 crore. Net operating income also saw an 18% rise, reaching Rs 4,048.4 crore, maintaining a healthy net operating income margin of 88%.

Further demonstrating its financial strength, Knowledge Realty Trust declared distributions of Rs 716.6 crore for the fourth quarter. The REIT also saw its unitholder base more than double since its listing in August 2025, indicating growing investor confidence.

Strategically, the REIT is focusing on AI-resilient portfolios in prime Indian markets. Rentals achieved on new leasing were at a 5% premium to market rents, and over 87% of leases signed included annual escalation clauses. The REIT is also expanding its development pipeline with a new 1.4 million sq ft office block in Bengaluru.

Knowledge Realty Trust successfully managed its debt, raising Rs 4,200 crore at a blended cost of 7.3% and reducing its overall cost of debt. This financial maneuver provides ample headroom for future acquisitions and portfolio expansion, with a loan-to-value ratio of 18%.