KNOWLEDGE — earnings call
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Prepared remarks
Unattributed
“Knowledge Realty Trust Q2 and H1 FY'26 Earnings
Conference Call”
November 10, 2025
MANAGEMENT: MR.
SHIRISH GODBOLE – CHIEF EXECUTIVE OFFICER,
KNOWLEDGE REALTY TRUST
OFFICER, KNOWLEDGE REALTY TRUST
SENTHIL KUMAR – VP - INVESTOR RELATIONS,
Knowledge Realty Trust
November 10, 2025
Moderator
Ladies and gentlemen, good day and welcome to the Knowledge Realty Trust Q2 and H1 FY'26
Earnings Conference Call.
As a reminder, all participant lines will be in the listen-only mode and there will be an
opportunity for you to ask questions after the presentation concludes.
Should you need assistance
during this conference, please signal an operator by pressing ‘*’ and then ‘0’ on your touchtone
Please note that this conference is being recorded.
I now hand the conference over to Mr.
Senthil Kumar – Head of Investor Relations, Knowledge
Thank you and over to you, sir.
Senthil Kumar
Thank you and good afternoon to everyone joining us today.
On behalf of the Management
Team, I would like to extend a warm welcome to all participants of Knowledge Realty Trust Q2
FY'26 earnings call, our maiden report since listing in August 2025.
Before we proceed, a couple of important disclaimers:
I would like to highlight that the Management may make certain comments that may constitute
forward-looking statements.
Please be advised that our actual results may differ materially from
these statements.
KRT does not guarantee these statements or results and does not oblige to
update them at any point of time.
Joining me today on the call are Shirish Godbole – KRT CEO, Quaiser Parvez – our COO and
Neeraj Toshniwal – our CFO.
We will start off with brief remarks on our business, macro
environment, and financial performance, and then open the floor to questions.
Over to you, Shirish.
Shirish Godbole
Thank you, Senthil.
It gives me immense pleasure to address you all on our First Earnings Call
as a listed REIT.
The past few months have been transformational for Knowledge Realty Trust,
and we are delighted to report a strong and steady start to our journey as a publicly listed entity.
Our IPO in August’25 marked a significant milestone, not only for KRT but also for India's
REIT ecosystem.
We received an overwhelming response with over 12 times oversubscription.
To reiterate a few points, we are the largest REIT in India by market cap of over Rs. 52,000
crores with a high-quality 46 million square feet portfolio.
We are also the most geographically
diversified office REIT with over 95% of our value comprised in three core markets, namely
Mumbai, Hyderabad, and Bangalore and the best micro markets within these cities.
India's macro performance remains strong.
India's GDP is expected to grow at 6.8% in FY'25-
'26 with Quarter 1 growth already at 7.8%.
The office market fundamentals continue to be
extremely positive with a record 60 million square feet of gross absorption during the nine
months of calendar year '25, leading to the lowest vacancy levels post-COVID.
In line with our
focus on delivering sustainable and long-term returns, we have been focused on driving
efficiencies, enhancing asset productivity, and leasing our assets to high-quality tenants.
Knowledge Realty Trust
November 10, 2025
have actively managed our capital structure to secure competitive financing terms.
Simultaneously, we continue to scout for acquisitions across markets to deliver inorganic
growth, an important value driver for our business.
The leasing activity for our portfolio was strong in the first half, wherein we have achieved over
1.8 million square feet of gross leasing, taking the completed portfolio occupancy up to 92%.
We are seeing continued demand from both GCC as well as domestic occupiers, who collectively
contributed 70% of our leasing volumes in the first half.
As per our plan, we reduced leverage from 31% to 18% by using IPO proceeds to retire debt.
Post-listing, we have successfully refinanced and renegotiated our debt portfolio to achieve a
blended 7.4% interest cost, a saving of 120 basis points.
With strong operating performance and strategic debt management, we are also pleased to
announce our first distribution of Rs. 1.56 per unit for net distributable cash flow of Rs. 690
We are delighted to highlight that although our REIT was listed on 18th August, the NDCF
for the full quarter is being distributed to all the unit holders.
Over and above the distribution,
we are glad to note that our REIT has also delivered a price appreciation of over 18% to our
investors since listing.
With that, let me now hand you over to Quaiser to update on our business performance.
Quaiser Parvez
Thank you, Shirish.
India's office sector truly is in the midst of a structural growth cycle powered
by GCCs and fast-growing domestic corporate.
In the first nine months of this calendar year,
GCCs alone accounted for about 40% of India's office leasing, underscoring the sustained depth
of this demand.
The portfolio service acts as an office for India and office for the world and is
strongly positioned to capture this growth.
Let me now dive into our business highlights for the first half:
We achieved a healthy gross leasing of 1.8 million square foot and added 18 new occupiers.
Gross leasing comprised 1.2 million square foot of new leases and 0.6 million square foot of
renewals at a healthy 29% average spread.
Out of the total expiries of 1.4 million square foot in
the first half, we renewed 0.6 million square foot and re-leased an additional 0.7 million square
foot, resulting in an impressive retention and re-leasing ratio of 90%.
Backed by strong leasing
momentum, our occupancy increased 340 bps year-on-year to 92%.
With ramp-up in occupancy
and enhanced operational efficiency, we were able to deliver a NOI growth of 20% year-on-year
and a record NOI margin of 89%.
In terms of performance in our core market, our Hyderabad portfolio is a standout.
million square foot and 99% occupancy, it is one of the largest GCC hubs in India.
occupancy has improved by 6% year-on-year to 88%.
And with the constraint supply, the
outlook remains strong.
Bengaluru has seen a 4% year-on-year occupancy increase to 88%
driven by demand from technology and GCC occupiers.
Our leasing momentum continues to be
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November 10, 2025
underpinned by strong re-leasing strengths and client confidence across key assets.
at Sattva Knowledge City in Hyderabad, we have an existing occupier of ours, expanded by over
100,000 square foot at 44% re-leasing spread.
At One BKC in Mumbai, a renowned BFSI
occupier occupied 41,000 square foot at a 25% spread.
These re-leasing opportunities reflect the
embedded value in our portfolio.
Overall, in our 1.2 million square foot new leasing in the first half, we have achieved 8%
premium to the market rate.
We are able to command these premiums given we represent one of
India's finest grade A office ecosystem and buildings of choice.
Leasing activity during the
reporting period was driven by a healthy balance between the demand from new tenants and
expansion from existing occupiers.
What's particularly encouraging is that 57% of our new
leasing in the first half came from existing occupiers, endorsing our portfolio's quality and tenant
This has been the trend in our portfolio over the last three years, where expansion by
our existing clients contributed to about half of our leasing activity.
Also, we have been strategically working on our rental escalation profile.
Over 90% of our
leasing in the first half comprise of annual rental escalations compared to the standard three-year
The annual escalation is also driven by a front office exposure in Mumbai, which
constitutes 32% of our portfolio by value.
This focus on annual escalation provides greater
visibility and steady compounding rent growth across the portfolio.
Our SEZ exposure remains
lowest among all REITs in India at about 15% of the total leasable area at a healthy 89%
Looking at our embedded growth levels, we carry a 22% mark to market potential
with a staggered expiry profile that allows us to capture the subside in a measured manner.
Our development pipeline of 9.2 million square foot is in Bangalore, comprising of near-ready
under-construction portfolio of 1.2 million square foot across two assets.
We are on track to
deliver these completions by the end of FY2026 and expect substantial pre-leasing as we move
closer to the completion.
The under-construction assets, along with a strong acquisition focus,
will deliver growth in the near to medium term.
We are also investing in the future.
We are deploying digital tools and AI-enabled building
operations that improve efficiency, reduce costs, and enhance the tenant experience.
with our sustainability initiatives, this highlights KRT's forward-looking tenant-centric
And with that, I will now hand over to Neeraj to walk you through the financial performance.
Neeraj Toshniwal
Thank you, Quaiser.
Good afternoon, everyone.
Let me highlight our financial performance for Q2 and H1 FY2026:
KRT delivered strong operating performance and remains focused on achieving its projected
financial targets.
The current consolidated financials reflect performance for the period starting
from August 8 to September 30th, 2025, basis REIT formation.
Revenue for H1 FY2026 was
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November 10, 2025
INR 22,019 million, up 17% year-on-year with NOI of INR 19,544 million, up 20% year-on-
We continue to maintain our NOI Margin and EBITDA margin at 89% and 87%
We are also pleased to announce our first distribution.
The Board approved a distribution of INR 1.56 per unit, i.e., NDCF of INR 6,900 million. 98%
of the distribution for Q2 FY2026 is tax-exempt or tax-deferred in the hands of unit holders.
expect this figure to normalize around 86% to 91% for the full year FY2026.
We successfully
raised INR 16 billion through AAA-rated listed non-convertible debenture at the REIT level.
The proceeds were used to repay debt at the SPV level.
The NCDs were issued at a competitive
coupon of 7.2%, with a maturity of 3 years.
Additionally, we have renegotiated and refinanced
our SPV-level debt, which has resulted in our overall cost of debt going down to 7.4%, a savings
We will continue to explore refinancing opportunities to further optimize financing
Our LTV remains low at 18%, offering substantial headroom for future acquisitions in the
Our gross asset value as of September 30th, 2025 stands at INR 646 billion and NAV translates
to INR 118 per unit.
Overall, KRT enters the second half of FY2026 with strong operating
momentum, low leverage, and multiple levers ahead to drive growth.
With that, I will now hand the call back to the moderator to open the floor for questions.
November 10, 2025
QUESTIONS & ANSWERS SESSION
(Note: The Q&A has been edited for clarity)
Questions and answers
Moderator
Thank you very much.
We will now begin the question-and-answer session.
Our first question
is from the line of Deep Shah from B&K Securities.
Please go ahead.
Deep Shah
Thanks for the opportunity and congrats on the listing and good set of numbers.
First is, specifically on the Knowledge Park, we saw significant improvement in
revenues and NOI this quarter.
So, anything to call out there and is there a one-off or something?
Second, on our debt structure, so I think we are probably at the end of low interest
rate regime or maybe one more interest rate cut.
Any particular plans that you have to lock in
fixed rate debts at these prices?
And third is on the expiry.
So, whilst our overall expiries are
quite low, but any discussions that you are in for, say, two assets in particular, One BKC and
Any qualitative remarks around this would be very useful.
Quaiser Parvez
I much appreciate the question.
For the first two questions, I will pass this on to Neeraj
to answer them and I will take the third question.
Neeraj Toshniwal
So, regarding your first question, Deep, significant improvement in NOI margin,
this is because, leasing started from previous year, and hence full-year impact is there.
And on second question, regarding the debt structure, low interest rate what you said,
there may be one more cut, so we are closely monitoring some macroeconomic indicators, and
this is the GSEC and other parameters.
We will be taking a call to move the loans from fixed to
floating interest rates.
Currently, as I said, the way the portfolio is, we have a balanced portfolio
linked to floating with various benchmarks with MCLR linked loan and T-bill linked loan and
repo rate linked loan.
So, we will benefit from any further interest rate cuts.
Shirish Godbole
But I just want to add, this is Shirish, that we are going to be monitoring and we will fix the rate
as we deem appropriate over the next few quarters.
Quaiser Parvez
Deep, I will take the third question with regards to the expiry.
Portfolio has a standard expiry
profile of 1.5 million square foot and that's essentially 44% to 45% of those expiries come from
And that's largely because of the fact that those 3 to 4 years as compared to the other
parts of the portfolio, which is much longer because the leases are much longer. [[With your
specific question on One BKC, it's 70,000 square foot, which is coming in for expiry.]]
Deep Shah
This is very useful.
Thank you and all the best.
Moderator
Our next question comes from the line of Pritesh Sheth from Axis Capital.
Pritesh Sheth
Good afternoon and thanks for the opportunity.
Firstly, on the guidance, or rather I would say
the projections that were put out while we were doing the IPO, you still hold on to that?
terms of achieving the NOI targets, what would be the broader building blocks to achieve that
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November 10, 2025
guidance in terms of end of the year occupancy etc., whatever you want to point out?
in terms of NDCF, I think if I analyze the current quarter’s distribution run rate, we are already
doing better than the FY'26 estimate that we had put out.
So, any upside risks to your NDCF
projections that you had put out?
That's my first question in two parts.
Quaiser Parvez
I will take that question, Pritesh.
With regards to our projections, we remain focused on
achieving our NDCF guidance.
But it's also sort of important to bear in mind, it is not a linear
period for us because the IPO came in the middle of the quarter.
In fact, we will be able to better
leverage the full run rate of the second half as we step into the second half.
But to your specific
question, question number two of what the broader guidance would look like in terms of
occupancy for us to meet the projection, that number would be in the range of 93% to 94% of
portfolio occupancy up 1% to 2% from where we stand now.
Pritesh Sheth
And on the NDCF, you will still probably want things to settle down and come up with
the projection numbers?
Neeraj Toshniwal
So, let me take this.
As Quaiser has mentioned, we are focused on meeting the NDCF
Pritesh Sheth
And with the kind of the rate cuts that we have seen or interest rate benefits that we
have already seen, were these numbers are already part of the projections or we will see some
upside risk coming with this lower interest rates that we are seeing now?
And, in this quarter's
NDCF number, the benefit of 8.6 going to 7.4, has that been fully materialized into this number
or we will see further benefit of this 7.4 coming in the following quarters?
Neeraj Toshniwal
So, Pritesh, let me take this one.
So, during projections, between projections and the current cost
where we are, so there is still some room which is available, which we will get some benefits in
the second half because of this interest rate reduction at 7.4%.
Quaiser Parvez
The full impact of the interest rate reduction is not fully baked in, Pritesh, just to clarify.
Shirish Godbole
Yes, just to answer that question.
Pritesh Sheth
So, there would be upside risk to our projected NDCF in the final document because of
these low interest rates, right?
Quaiser Parvez
There will be upside benefits.
Not risk, but yes, potential.
Pritesh Sheth
Yes, upside benefit.
That's it from my side.
Quaiser Parvez
Thank you, Pritesh.
Moderator
Our next question is from the line of Mohit Agrawal from IIFL.
Please go ahead.
Knowledge Realty Trust
November 10, 2025
Mohit Agrawal
Good afternoon and congratulations to the team on a very good listing.
My first question is on
your Mumbai portfolio and specifically on Lower Parel.
So, if I look at your offer document,
draft offer document numbers in terms of occupancy and what you've shared now, there is a
fairly 600 bps to 900 bps kind of an improvement across OIC, OUC, and OWC assets.
you talk about and with healthy in-place rentals increases as well?
You also alluded in your
opening remarks about Mumbai having annual escalation.
So, could you kind of run us through
what is the kind of demand that you are looking at?
Also, there is a fair bit of expiry in the next
4-6 quarters, about 25%-30%.
So, how do you see the demand shaping up?
And where do you
see probably Mumbai portfolio by the end of this year?
Quaiser Parvez
Thank you, Mohit.
I will take that.
In fact, in our view, Mumbai is going through a very healthy
tightening phase.
As you would agree, vacancy in majority of the key submarkets, if I have to
look at in terms of Lower Parel particularly, is in the zip code of about 8%-9% expected to be
by about 5% in the next 2 years.
BKC is already in the much lower single digit sort of vacancy.
And one of the reasons is resurgence of the domestic occupiers, their preference for grade A
assets, plus the MNCs and the expansion which we are seeing and the tightening of the demand.
The combination of all these 3 reasons is led to 600 bps increase in our occupancy, particularly
in terms of our Lower Parel where we have moved from 79% to 85%.
In fact, we feel quite
optimistic of reaching 90% in the next coming few months.
If I have to talk about BKC and
Powai, each of these submarkets again have a low single digit vacancy.
Our Powai market asset
has a 95% occupancy and BKC particularly 70,000 was up for expiry that has been renewed
Mumbai market particularly has seen the re-leasing spread of roughly about 22%.
every lease which we have done in the last 6 months has come with an annual escalation.
that is a strong reflection of the pivot the office market is making from the 3 year, 15-year
escalation to an annual escalation.
Mohit Agrawal
So, that is clear.
On your portfolio, you have done about 1.8 million gross leasing for the
What will be the target for the full year?
And also, your 92% committed occupancy,
where does it broadly sit in March 26?
Quaiser Parvez
So, as for the H2, and if you have to look at the consolidated numbers, we are targeting a
portfolio occupancy of 94%.
And that would mean leasing for H2 to be done of roughly about
1.4-1.5 million square foot in the next half of the year.
Mohit Agrawal
So, about 3.5 million for the full year, right?
Quaiser Parvez
Yes, absolutely.
Mohit Agrawal
Those are my questions.
Quaiser Parvez
Thank you, Mohit.
Moderator
The next question is from the line of Puneet from HSBC.
Please go ahead.
Knowledge Realty Trust
November 10, 2025
Yes, thank you so much.
And congrats on your first call.
My first question is actually on growth.
How do you think about growing this REIT?
What are the organic and inorganic routes you are
likely to explore here?
Quaiser Parvez
I will take that.
We have multiple growth levers, few organic and few inorganic.
think the more organic ones, which is embedded in our portfolio, number 1 is essentially the
mark-to-market potential of 22%.
Our in-place rent for the portfolio is Rs. 94, up from the Rs.
And mark-to-market potential is 22%.
In fact, the 1.8 million square foot of leasing has
happened with an 8% premium to market.
So, that is a big important growth here.
this, we have an under-construction asset of 1.2 million square foot, which is progressing very
And we are targeting completion by the end of this fiscal year.
And depending upon the
pre-leasing on the 1.2 million square foot, on our same-store basis, we will true up the occupancy
The third growth lever comes from our ROFO assets, which is 6.7 million square
foot from our sponsor store assets are expected to be available to the REIT for evaluation in the
next 2-3 years.
And fourth and the most important is inorganic pursuit of acquisitions and for
that, I will place Senthil to answer few questions.
Senthil Kumar
Puneet, by design, we are brand neutral.
So, there is a clear focus on acquisitions.
second, if you will notice, our LTV is at 18%, which gives us substantial headroom for growth.
So, at this point of time, we are building our pipeline quite actively.
As and when we progress
on any of these transactions that we are evaluating, we will give you some color.
And for MTM perspective, how long do you think will it take to realize that 22%
And if you can give some thoughts on next 2-3 year perspective, how much of that should
we be able to capture?
Quaiser Parvez
So, the 22% embedded mark to market upside, this comes from a very strong rentals, Rs. 94
versus the Rs. 115.
We are already 8% premium to the market.
As I see it, as more leases renews
over the next 2-3 years, the whole MTM gap will progress.
Moderator
Sir, sorry to interrupt.
We lost your audio in between this last sentence.
If you could please repeat
Quaiser Parvez
So, as I was saying, as more leases renew over the next 2-3 years, this MTM gap of 22% will
progressively flow through, in terms of driving the growth, both in terms of NOI, NAV and
So, any number that you can throw for next 2 years?
Because a large part of it as I see is in
Hyderabad, where these are recently released assets will probably renew much later as well?
So, I can give you an anecdote on Hyderabad.
The in-place rental Puneet, in Hyderabad for a
portfolio is Rs. 78-Rs. 79 whereas the marginal rent in the micro market, the sub market where
we operate prominently is in the 120 range.
And that is a significant 40%-45% jump in terms of
the rental MTM possibilities.
In fact, if I look at the spread out of the 1.8 million square foot,
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November 10, 2025
400,000 has come from Hyderabad at a re-leasing spread of 36%.
So, that is a very strong re-
leasing spread in an MTM potential market.
No, I understand that.
But only 5% of portfolio comes up for renewal in next 3 years, right, in
So, bulk of it has to come from Mumbai.
Quaiser Parvez
Yes, only 5% of the portfolio comes up for renewal.
So, in 2 years, 27, 28, bulk of it will be from Bangalore and Mumbai.
Is that understanding
Your understanding is correct, Puneet.
Out of the 1.5 million square foot, which naturally expires
every year, about 40%-45% comes from Mumbai.
Remaining comes from Bangalore.
you rightly pointed out, little comes from Hyderabad.
And that is why Hyderabad anchors the
portfolio from a stability standpoint.
And every time there is a churn in the Hyderabad portfolio,
the upside opportunity in terms of re-leasing is significantly high.
And that is something which
we have seen in the first half by leasing 400,000, which was from 97%-99% at a 36% spread.
But your point is right.
Less of Hyderabad is coming up for leasing because the occupancy is
That is helpful.
And philosophically, in terms of distribution and loan-to-value, you
What is the level you are comfortable with?
And from distribution perspective, most
of the other REITs are pretty much distributing out 100% of their NDCF.
Should we expect you
to do the same?
Shirish Godbole
So, we are distributing 100%, and that is the plan.
We will continue to distribute all the
cash flow that we will have.
And the other question, the first question, on the loan-to-value of
18%, the plan is to actually take the LTV up over time.
We intend to make acquisitions.
make acquisitions, we will finance those acquisitions through leverage.
So, over time, this
leverage will go up.
And it depends on when we find the acquisitions and how much.
were to take it up 13%-14%, that is a good Rs. 6,000-Rs. 7,000 crores of potential that we can
borrow and finance acquisitions as we move forward.
So, that is sort of the broad plan.
timing, obviously, is to be determined.
So, your headroom for level of comfort?
If I were to add this 15% over 18%, 33%-34% is your
Neeraj Toshniwal
So, Puneet, currently, as Shirish mentioned, we are at 18%.
So, we will be following the
So, whenever we reach at a threshold, let us say 25%, we will seek necessary
And we are conservative.
We can go up till 49%, but we are conservative.
you can say 30%-31% is something we can easily go with.
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November 10, 2025
Shirish Godbole
And it really is acquisition dependent.
We will just see where we are.
If it is very accretive and
a very attractive acquisition, it may go up a little bit in leverage.
But obviously, we are going to
And we will go through the appropriate process in terms of approvals.
That is helpful.
And similarly, on the debt side, a large part of your debt is floating
Is there a thought process to convert that into fixed?
The short answer is yes.
Obviously, we are considering that.
It is interesting times on the
Inflation continues to stay low.
Rates are at an attractive level, tempting to fix them
and so we are considering what percentage of the portfolio we should fix over the next few
We will be doing that and monitoring the situation as it goes.
It is not an exact number.
But yes, over time, we will be fixing a part of the portfolio to take advantage of the low rate
But we feel that there is potential for maybe some rate movement downward.
we want to make sure we time it right.
And lastly, I couldn't find the NDCF walkdown in your presentation.
Any thoughts on when do
you want to start reporting that?
Neeraj Toshniwal
So, this is a one-off quarter, as mentioned earlier also.
H1 is not linear.
in the middle of the quarter.
Maybe H2 is the place when we will be taking advantage of strong
leasing momentum.
So, maybe at the right point of time, we will be disclosing this walkdown.
That is helpful.
Thank you so much and all the best.
Moderator
Our next question comes from the line of Kunal from Bank of America.
Two quick questions from me.
Number one, could you remind us what is the
pre-leasing status of the 1.2 million that is nearing completion by end of the year?
Quaiser Parvez
Is that the only question, Kunal?
Should we wait for the second one?
The second one is on the point around the guidance that you should see a stronger flow through
I just want to verify that, is this contingent upon incremental leasing in back half of the
year, given that most of the leases could have a rent-free period of 3-6 months?
that it isn't leased contingent?
I will take the first question, Kunal.
With regards to the pre-leasing status of the 1.2 million
square foot, the assets are in advanced stages of completion.
We expect that to be completed by
the end of this year.
There is no significant visibility on the leasing, and the reason being, Kunal,
is we are mindful of not strata-leasing this.
And when I say strata-leasing, this is to leave this to
a few anchor tenants instead of really doing this floor-by-floor or smaller denomination.
a part of the leasing strategy, we want to approach this in a formal manner where these assets
Knowledge Realty Trust
November 10, 2025
are leased out to only 3-4 occupiers, or at best, only 1 occupier.
And that is something which we
are following through as part of the leasing strategy.
And we are hopeful that by the end of this
fiscal year, we should have a strong pre-leasing visibility.
The second part would be the guidance for H2.
Quaiser Parvez
Kunal, as I mentioned earlier, the guidance for H2 and, in fact, the consolidated for the whole
FY '25-26 will be on a same-store basis, 93%-94% occupancy at the portfolio level.
I hear the year-end occupancy levels.
Just my only question was, is that would also define
part of the run rate you are expecting to hit by Q4?
Because I think we are talking of committed
occupancy as opposed to rent yielding number?
Kunal, I am sorry, I couldn't get the question right.
Shirish Godbole
Are you trying to differentiate between committed occupancy and economic occupancy?
So, my point being that as you are sort of looking at the 92% number going up to
94-ish in another 6 months that may not necessarily convert into a rent yielding or an economic
occupancy perspective.
Is that needed for you to hit the guide or not really?
Quaiser Parvez
No, so that is not needed.
But I will just give you a slight color around the committed occupancy
and the economic occupancy.
Today, as we speak, we have a total committed occupancy of 92%
and the economic occupancy is 86%.
This is essentially a difference.
We just sort of come to a
6-point difference, which is narrowed down from a 9-point difference starting March of 2025,
when this difference was 91% of occupancy and 82% of economic occupancy.
So, in fact, as we
go along, we think this difference will narrow down further to 3-4 points of difference as we
start billing the new occupiers in the next few months.
Got that very clear.
So, essentially, this is predicated on 86% going to 89-90%?
Shirish Godbole
Thank you so much.
Moderator
Our next question comes from the line of Praveen Choudhary from Morgan Stanley.
Please go ahead.
Praveen Choudhary
Thank you Shirish, Quaiser, Neeraj and Senthil.
Most of my questions are thoroughly answered.
I wanted to congratulate you on the successful IPO.
If I were to ask a question, it
is on inorganic growth strategy.
Two parts to it.
Would you be looking in cities outside of the
three core markets, Bangalore, Hyderabad, and Mumbai, when you are looking for inorganic
And second, would you be using equity if it would make sense for the acquisition?
you think LTV is low enough that initially it will all be debt funded?
Knowledge Realty Trust
November 10, 2025
Quaiser Parvez
I will take the first part of the question, Praveen.
Particularly, will we be looking for acquisitions
beyond the 3 cities?
The simple answer is yes.
We will be looking at all the key markets where
office market has depth and buoyancy.
But particularly, the way we look at acquisitions will go
through the same big qualifiers of being in the right city.
Even more important is being in the
right sub-market and high asset quality with the right set of tenant profile.
That being said,
Shirish can answer how we want to approach this from a debt and an equity mix.
Shirish Godbole
I think you are aware, right, we are at 18% leverage.
So, obviously, we have the
capability to finance the acquisitions going forward.
But we use a judicious mix, right.
look at the needs of a seller.
We can obviously issue equity as well to the extent that it benefits
the capital gains treatment for a seller or combine it with cash and equity.
So, it really depends
on the opportunity and the situation.
With 18% leverage and we can take it up to, let us say, 31-
32% that gives us Rs. 7,000-Rs. 8,000 crores of financing capability.
And as you are aware, you
saw the NCD rate we had of 7.2%.
It is obviously fairly attractive.
And given where the market
cap rates are, that gives us the potential to make accretive acquisitions.
So, we will judiciously
use a mix of equity and debt as appropriate and in the market as Quaiser pointed out.
hopefully, that answers your question, Praveen?
Praveen Choudhary
Thank you again and congratulations.
Shirish Godbole
Thanks, Praveen.
Moderator
Our next question comes from the line of Vinay Nair from RARE Enterprises.
Vinay Nair
Thank you for the opportunity.
I have an accounting question.
Could you help us please
reconcile the revenue numbers in the press release about Rs. 1,124 crores with the reported
We are looking at the consolidated number close to Rs. 700 crores.
EBITDA NOI also, that would be very helpful?
Neeraj Toshniwal
So, the reported number is from the mid of the quarter and the other number what
you are referring is for the full Q2.
Shirish Godbole
Yes, see, because we closed, we had the listing in mid-August.
That is why it brings up this
unusual quarter for us.
Some of the numbers are just for that period.
And obviously, the first half
numbers are for the full half year.
Neeraj Toshniwal
Yes, because formation happened mid-quarter.
So, that is why the reported number is mid-
Vinay Nair
So, the press release number Rs. 1,124 crores is both including the pre-formation
Knowledge Realty Trust
November 10, 2025
Vinay Nair
That explains it.
Thank you so much.
Moderator
We have no further questions at this time.
On behalf of Knowledge Realty Trust, we can
conclude this Earnings Call.
Thank you all for joining us.
You may now disconnect your lines.