KNOWLEDGE — earnings call

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Prepared remarks

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“Knowledge Realty Trust Q3 FY26

Earnings Conference Call”

February 05, 2026

MANAGEMENT: MR.

SHIRISH GODBOLE – CHIEF EXECUTIVE OFFICER,

KNOWLEDGE REALTY TRUST

QUAISER PARVEZ – CHIEF OPERATING OFFICER,

NEERAJ TOSHNIWAL – CHIEF FINANCIAL

OFFICER, KNOWLEDGE REALTY TRUST

SENTHIL KUMAR – VP - INVESTOR RELATIONS,

Knowledge Realty Trust

February 05, 2026

Moderator

Ladies and gentlemen, good day and welcome to Knowledge Realty Trust Q3 and FY26

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.

you need assistance during the conference call, please signal an operator by pressing star then

zero on your touchtone phone.

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, Mr.

Senthil Kumar

Good afternoon to everyone joining us today.

On behalf of the management team, I'd like to

welcome all the participants for the KRT's Q3 FY26 earnings call.

Before we proceed, a couple

of important disclaimers.

I'd 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 is not obliged to update them at any

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.

Shirish Godbole

Thank you, Senthil, and a very warm welcome to everyone.

I will begin with a brief introduction

about KRT for the participants who may be joining us for the first time.

KRT got listed in August

2025, and we are the largest REIT in India by market cap at over INR50,000 crores.

quality 46 million square foot portfolio, we are also the most geographically diversified office

REIT with over 95% of our value comprised in the three core markets of Mumbai, Hyderabad,

I am happy to inform you that we were included in the FTSE EPRA Nareit Global REITs Index

in December 2025, reflecting growing global recognition.

Encouragingly, we continue to see

broadening participation across investor segments, with our unit holder base doubling since

Since our listing in August 2025, our unit price has gone up over 20% as a result of strong

operating performance and macro tailwinds.

We also made our maiden distribution of INR1.56 per unit in the previous quarter.

macro environment remains supportive with India's real GDP growth hitting a six-quarter high

of 8.2% in the second quarter of FY26, interest rate environment being favorable, and office

markets scaling new highs every year.

Against this backdrop, KRT is well positioned to benefit

across operating, financial and capital market dimensions.

I am pleased to report our Q3 FY26

Revenue grew 21% year-on-year, while NOI increased 19% year-on-year to INR10,407 million

in the third quarter of FY26.

I am very happy to announce that in line with our projections,

distributions for Q3 stand at INR695.3 crores, translating into a DPU of INR1.57, reflecting the

strength and predictability of our business.

Knowledge Realty Trust

February 05, 2026

With a low LTV of 18%, we remain well positioned to pursue disciplined inorganic growth.

Overall, we enter the final quarter of FY26 with strong operating momentum, a resilient balance

sheet, and visible growth levers.

With that, I will now hand over to Quaiser Parvez, my partner,

for an update on our business performance.

Quaiser Parvez

Hello everybody and thank you Shirish.

Good evening everyone.

Before I get into our

performance, a quick word on the market backdrop.

India's office market closed calendar year

2025 with a record 82 million square foot of absorption.

With GCCs contributing close to 40%

This reinforces that India's office story today is structural and not cyclical.

Vacancy in our core markets is stabilizing, new supply is becoming more selective, and high

quality assets continue to see strong tenant interest.

Against this backdrop, our portfolio remains

very well positioned, concentrated in the strongest market with long lease tenures and high

quality occupiers.

Now let me walk you through our operating performance for the quarter.

Portfolio occupancy

remains stable at 92%, and we carry a healthy leasing pipeline of about 1 million square foot

which gives us good visibility to drive further occupancy movement.

During Q3, we completed

0.6 million square foot of gross leasing taking cumulative leasing for the first nine months of

FY26 to 2.4 million square foot driven by GCCs and front office occupiers.

average spread of 25% year to date, reflecting continued pricing power across our core assets.

Importantly, leasing quality continues to remain strong.

Expansions by existing occupiers

contributed more than half of our year-to-date leasing which is a strong indicator of occupier

satisfaction and relationship.

We continue to see tangible mark-to-market realization across key

At One BKC we renewed 70,000 square foot with a global technology company at record

rentals of INR430 achieving a 17% re-leasing spread.

At One International Center in Lower Parel, we re-leased to a leading global consulting firm at

INR222 achieving a 19% spread.

Our portfolio has an embedded 22% mark-to-market potential

supported by a well-phased lease expiry profile.

This allows us to actualize rental upside in a

calibrated and a sustainable manner over the next several years without taking concentration

Also, our existing focus on rent escalation profile has resulted in an over 90% of our year-to-

date leasing being on annual basis compared to the standard three-year escalations.

results in greater visibility and steady compounding rent growth across the portfolio.

sustained leasing momentum and strong spreads, we delivered 19% year-on-year NOI growth

Alongside leasing, we continue to invest in improving asset quality and tenant experience.

believe these investments not only directly support tenant retention and improve pricing power

but also help the long-term asset values and are closely aligned to our sustainability and wellness

Knowledge Realty Trust

February 05, 2026

To summarize, we continue to see strong leasing momentum and high tenant stickiness, deep

pricing power and strong escalation profile, a very visible MTM led growth ahead and an

operating performance that supports stable and predictable distributions.

With that, I will now hand it over to Neeraj to walk you through the financial performance in

Neeraj Toshniwal

Thank you, Quaiser.

KRT delivered a strong financial performance during the quarter.

for Q3 FY '26 stood at INR11,787 million representing a year-on-year growth of 21%, while

NOI increased 19% year-on-year to INR10,407 million.

We are also pleased to announce that

the board has approved a distribution of INR1.57 per unit, that is NDCF of INR6,953 million

for Q3 FY '26. 92% of the distribution for Q3 FY '26 is tax exempt or tax deferred in the hands

of unit holders.

We expect this figure to normalize around 86% to 91% for the full year FY '26.

quarter, our higher floating grade debt composition and repayment of higher cost borrowings

resulted in a 19 bps reduction in our average cost of debt from 7.44% to 7.25%.

We will continue

to monitor the interest rate environment to further optimize our financing costs.

With its premier

portfolio, geographical diversification, embedded growth visibility, and disciplined capital

allocation approach, KRT remains well positioned to deliver sustainable growth for its unit

With that, I will now hand the call back to the moderator to open the floor for questions.

Knowledge Realty Trust

February 05, 2026

QUESTIONS & ANSWERS SESSION

(Note: The Q&A has been edited for clarity)

Questions and answers

Moderator

Our first question comes from the line of Nilesh Doshi from Prospero Finvest Limited.

Nilesh Doshi

Thanks for the opportunity.

Sir, congratulations for the good set of numbers.

But sir why the

distribution does not increase compared to the September quarter in spite of the there is a

reduction in the cost of borrowing from 8.6% in the March quarter to 7.4% in the September

quarter and what is the broad guidelines for the future distribution sir?

Senthil Kumar

Thank you for the question.

So what has happened in terms of borrowings is yes we've

had some savings but if you see majority of the rate reductions have come in the fag end of the

For example there was a rate cut in December.

After the lag of transmission, the full year

effects only be in Q4.

So net-net there are some savings but there is always some minus and

So overall we will meet our NDCF projections for FY '26.

Nilesh Doshi

So, so will the company maintain, will the REIT maintain the current distribution or it will be

Senthil Kumar

So we have given projections in the offer document, so we will meet those projections.

for FY '27, there will be an increase from FY26.

FY '26, whatever is in the projection will be the

Nilesh Doshi

And sir, next question, what is the difference between the committed occupancy and

actual occupancy?

And if the committed occupancy takes time to convert into the actual

occupancy, then what is the time gap between the committed occupancy and actual occupancy

so the revenue can be generated from the committed occupancy?

What is the general time lag

and how much is the actual occupancy and what is the committed occupancy, sir?

Quaiser Parvez

I will take that question.

My name is Quaiser Parvez, Nilesh.

Nilesh Doshi

Thank you, sir.

Quaiser Parvez

The difference between committed occupancy and the actual occupancy is essentially the

occupancy versus the rent generating occupancy.

Traditionally, the difference between

committed occupancy or actual/economic occupancy is roughly about 3% to 4%.

particular case, our difference as of March was 9 point difference, which has narrowed down to

a 6 point difference today.

We -- our committed occupancy today is 92% and our actual/economic occupancy is about 86%.

And as we sort of look forward, we think this 6 point difference will narrow down to a 3 to 4

point difference in the probably next two to three quarters.

Nilesh Doshi

And sir the -- are the REIT is required to, the sponsor of the REIT required to reduce

their stake to below 75% to maintain the listing or the REIT is out of that purview?

Senthil Kumar

No, there is a three years' timeframe for doing that, Nileshji, so we still have time to do that.

Knowledge Realty Trust

February 05, 2026

Nilesh Doshi

Thank you, sir.

That is all from my side.

Moderator

Our next question comes from the line of Pritesh Sheth from Axis Capital.

Please go ahead.

Pritesh Sheth

Good afternoon, and thanks for the opportunity.

First, on -- firstly, the comment I think

you mentioned about FY '27 distribution being higher than our projections.

could be the reason for that?

I mean, obviously, interest rate is one.

But are you also doing better

in terms of leasing as well as rentals?

So if you can highlight, you know, on that.

Senthil Kumar

Thank you, Pritesh.

Just to clarify, what I meant for the earlier question is, our distribution for

FY '26 was projected around INR6.2 per unit for the whole year.

What I meant is FY '27 will be

higher than that, which was projected at around INR7.03.

That is what I meant.

I did not compare

it to the projections and then asked about an increase.

Pritesh Sheth

Got it, got it.

So with how the business has turned in last, you know, three quarters, both on the

leasing side, rental side as well as on the interest side, all of that is pretty much in line with how

the projections we are implying or we are seeing some difference there, either upside or

Quaiser Parvez

This is Quaiser.

Just reflecting back on your question from a business standpoint.

the -- in the last nine months on the business side, we have leased 2.4 million square foot; out of

which 1.6 million square foot is new leasing and 0.8 million square foot is renewal.

even more important is that all of the new leasing has come at about 6% premium to market and

renewals have come at about 26% spread.

So, essentially, we have seen a great leasing momentum in the market and our assets have been

able to leverage that momentum.

And we see that momentum carrying through Q4 and in FY

So we remain very optimistic of not just meeting our NDCF guideline for FY '26,

and also sort of shoring up the occupancy as we walk into FY '27.

Pritesh Sheth

And on the interest side, it is pretty much in line with what you had expected or you are

Neeraj Toshniwal

This is Neeraj.

So interest side as per projection, we have done better.

explained, because the -- the kind of benefit which is flowing in, maybe in the next quarter we

will get the full benefit for the entire quarter.

Pritesh Sheth

Got it, got it.

Coming up for -- a couple of more questions.

One on the, you know, revenue

While I think committed occupancy has not changed.

Sorry, am I audible?

I was asking committed occupancy has not changed much between last year and this

year, 90 to 92.

But as you pointed out, I think we have done, you know, well on leasing up the

contracted, you know, lease -- I mean, we have done better in terms of ramping up the contracted

Knowledge Realty Trust

February 05, 2026

leases that we had done in terms of narrowing down the gap between actual and committed

Is that the prime reason of, you know, growth in revenue of 21% since -- Y-o-Y,

apart from obviously your 5%-6% of contractual escalation?

So if you can break down the

revenue growth for me, that would be helpful.

Quaiser Parvez

Yes, so I think -- I think, you know, Pritesh, this is Quaiser.

Yes, I, you know, to your point that

the occupancy has moved from 90% to 92% and it's sort of remained stable.

And again it's a

great reflection of not really the demand in the market but it's just a difference in the timing.

have seen you know a very sort of -- some of the deals of the Q3 has moved to Q4 and which is

why you know, we think we have a very optimistic and a healthy pipeline for a million square

And most of which will hopefully get converted in Q4 and that that pipeline will convert in a

higher occupancy from 92% by the end of March 2026 where we expect our occupancy which

should swell to 93% which will have its own impact in terms of our NOI.

Pritesh Seth

Sure and just on you know the 21% revenue growth that we have clocked Y-o-Y, how would

you break it down between contractual plus you know ramping up of actual occupancy from last

year December to now if you can just put some numbers there?

Senthil Kumar

Pritesh, broadly as Quaiser was explaining the economic occupancy to committed occupancy

delta used to be about 9% last year when we were talking about these revenue numbers.

that has shrunk to now 6% gap.

So naturally that is a contributing factor in a big way.

like you rightly said there have been improvements in contractual escalations and mark-to-

market rentals.

Those are the large three breakups.

Pritesh Seth

Got it, got it.

And just lastly on the upcoming expiries, specifically in assets like Exora, One

BKC in Q4 and you know status on upcoming expiries in your Lower Parel assets next year and

Sattva Global City.

So where are the negotiations, how much we have renewed already, some

pointers on that.

Quaiser Parvez

Appreciate the question Pritesh.

On the 0.9 million square foot of expiries which is expected in

Q4, happy to inform that 42% of that area is already renewed or re-leased.

The remaining 0.5

million square foot is under advanced discussion of being re-leased and we believe much of it

will happen within the Q4 of this fiscal year or early Q1 FY27.

In fact noteworthy here is that

all our recent renewals has happened at an average spread of about 28%.

So in fact such expiries

has a very natural opportunity for us to actualize higher rental and realize our M2M

Pritesh Seth

And for next year?

Quaiser Parvez

And for next year the 1.5 million square foot which is upcoming for expiries we have tied up

about 62% of that.

Moderator

Our next question comes from the line of Murtaza Arsiwalla from Kotak Securities.

Knowledge Realty Trust

February 05, 2026

Murtuza Arsiwalla:

Hi sir, just one question, looking at the quarterly sort of occupancies, good to see Lower Parel

inching up slowly.

But anything to read in the Bangalore assets, we see some of those assets

seeing a sequential drop in occupancy.

Anything to really read out there?

any update you would like to give on the under construction assets in terms of commissioning

timelines, quantum pre-leased, etcetera?

Quaiser Parvez

I will break this in two parts.

The Mumbai assets, the occupancy in the Mumbai

assets have moved by 100 basis points quarter-on-quarter.

And you know from 79% in March it

is at 89% today and we feel quite optimistic about the Mumbai occupancy swelling much better

in in the next quarter.

That being said, in in Bangalore again our blended occupancy is 87%.

ORR led occupancy is about 89%.

This is clearly a reflection of a market where there is a buoyant demand and particularly on the

ORR stretch there is a constraint supply.

So we believe the next quarter we'll see a huge recovery

in our in our Bangalore occupancy because we have had some of the deals which is pushed

through from Q3 to Q4.

As regards our under-construction asset, we are in the final stages of

handing over this asset.

And we believe that by in the early part of FY27 we should be able to sort of commission it.

regards to the leasing of these under construction asset, there is a large anchor conversation

which is underway and we will be happy to report it probably in the in the next two quarters

which hopefully will coincide with the onboarding of the asset into the portfolio.

Moderator

Our next question comes from the line of Sumit Kumar from JM Financial Institutional

Securities Limited.

Sumit Kumar

The first question is on Cessna, if you look at the revenue from ops for nine months as well as

for the quarter, there has been a decline.

So what is you know the exact reason for that?

should we read into this decline?

Quaiser Parvez

Is that the only question or is there a second?

Sumit Kumar

And the second would be on Sattva Global City for the sake of being repetitive.

quarterly occupancies have gone down.

There has been some leasing as well.

But I think there

is another big expiry in FY27 also.

So what is the leasing pipeline there and what sort of

conversations are happening at Sattva Global?

Quaiser Parvez

So I'll start with the Sattva Global City.

Sattva Global City today has 79% occupancy.

occupancy is about 83% and the non-SEZ occupancy is about 91%.

But that being said, we de-

notified about 0.9 million square foot in the Sattva Global City and we were able to successfully

release 0.7 million square foot out of the 0.9 million square foot.

As we speak, we have a focused asset management plan where we are strategizing on two lines

One is to identify further area within the GVTP Sattva Global City, which will

increase the attractiveness of the asset.

Knowledge Realty Trust

February 05, 2026

And we are also looking at a development pipeline in terms of actualizing that development

pipeline within the Sattva Global City.

Because Sattva Global City, we firmly believe has critical

Advantages of metro connectivity, advantages of being in the sweet spot of pricing

of INR65 to INR70.

And moreover, it is appropriately placed for large IT services firms and universities from BTS

So while the take up in Sattva City would be gradual, but we think it's almost

imminent as we sort of walk into FY '27.

Sumit Kumar

And on the decline in Cessna, any reason for that?

Senthil Kumar

Hi, Senthil here.

Sumit, so if you see the occupancy, there was a marginal dip from

97% to 95% in Cessna during this quarter.

So there were a couple of exits.

That is the occupancy

dip and hence the NOI dip slightly.

Sumit Kumar

I'll rejoin the queue if I have more questions.

Moderator

Our next question comes from the line of Nilesh Doshi from Prospero Finvest

Please go ahead.

Nilesh Doshi

Thank you once again for providing the opportunity.

Sir what is the NAV and what discount rate

applied to calculate the NAV sir?

Senthil Kumar

So the NAV is INR118, Nilesh.

And the discount rate that we applied is 11.48%.

Nilesh Doshi

And sir generally the REIT investor are expecting the average return of 12 to 15%

over a period of time and REIT offer the distribution of 6% to 6.5% as a regular income and the

balance from the capital appreciation.

Is the appreciation will happen due to the increase in

income, increase in the income of the REIT or there is a price escalation of the property itself?

And if there is a appreciation due to the price hike of the property, but in the Mumbai area is

there a still scope for the further appreciation in the property price or is the 12% to 15%

expectation is reasonable or below reasonable?

Senthil Kumar

So Yes, so in terms of the price appreciation it's reflective of the business performance.

you look at our business, other than occupancy improvement and other positive cash flows which

come from year-on-year, there is contractual escalation on the existing business.

naturally the revenue and the margins will improve year on year even if there is no occupancy

And that is approximately about 5% per year.

So without any other effect you will have

improvement of 5% in revenues because of the contractual escalation.

And that naturally when

you discount at similar rates you will have an improvement in the NAV.

This is what we call as

roll forward from year-on-year.

Knowledge Realty Trust

February 05, 2026

So that is the return which will ideally should reflect in the price performance.

Plus you talked

about the 6% to 7% in distribution yield.

So together the total product return should be in that

range that you mentioned approximately 12%-13%.

Nilesh Doshi

Sir, my question is that can we increase the rent only because there was a renewal of the rent

agreement or because of the price of the property itself increase and we are earning the money

out of that that property and the property price itself increase in that area, so we can increase the

Escalation can happen and but in Mumbai area do you think really that BKC or any other

area there will be, there is a still scope for the price appreciation of the property?

Quaiser Parvez

So sir I'll answer that question.

My name is Quaiser Parvez.

So our in-place rent 9 months back

was INR90 which was an average of the whole portfolio rent.

That in-place rent has moved from

INR90 to INR95 as against the market rent of INR118 and that difference is really the mark to

market opportunity.

So clearly we are able to actualize some of the opportunities in the mark to market segment.

Again in the 1.6 million square foot of new leasing which we have done, 6%, it has -- we have

done a 6% premium to market which means we have rented above 6%, 6% more than the market

And when the renewals also has happened or of re-leasing the vacant spaces, that has come at a

So yes to your point -- we have been able to realize the market rent and so much so

that in in some cases we have been able to get 6% to 7% more than the market rents.

Nilesh Doshi

Thank you, sir.

That's all from my side.

Moderator

Our next question comes from the line of Parvez Qazi from Nuvama Group.

Parvez Qazi

Hi good afternoon, thanks for taking my question.

So I have two questions.

First on our debt

composition, I mean the fixed portion of the debt currently is about 13% odd.

your views on are we looking to maybe lock up more portion at current low rates which are

And the second is your views on the recent MAT amendment in the budget would

Neeraj Toshniwal

This is Neeraj, I will take this question.

So we are watching very closely this interest

And at the opportune time we will plan to move a portion of our debt into fixed

And the key point is in our portfolio 65% is linked to repo which looks very stable at

least in FY27 also at least in first half it looks stable.

So as I said that opportune time we will flip into fixed bucket.

And regarding the MAT, we have

recently listed and we do not expect significant impact on our portfolio from not carrying

forward the MAT credit.

Having said that, we are currently in discussion with our tax advisors

to assess the details and probably will share the outcome later.

Parvez Qazi

Thanks and all the best.

Knowledge Realty Trust

February 05, 2026

Moderator

The next question come from the line of Tanveer an Individual Investor.

Sir so quick question is that around organic and inorganic growth, we have peer REITs

that are acquiring properties and also stepping into the sector of data centers.

Also the budget

now has lot of incentives for data centers.

And I can see LTV is you know pretty low around

So we have that room.

So what are your plans on doing any organic or inorganic

Shirish Godbole

So we are actively seeking looking out for acquisitions, right?

And we are looking at every

opportunity that is out there.

But we are being disciplined.

So we are just trying to make sure

that we make accretive acquisitions and to that extent just because an opportunity is out there

does not mean that we will just go out and make that acquisition.

Also we just listed in August.

So some of the transactions that you have mentioned have been in

the works for the while, right?

So we kind of got in August, we have then started looking at

So it just takes time for opportunities to really get set up and for us to actually

execute and execute at reasonable levels.

So keeping that in mind we will let you know if there is acquisition obviously down the road,

but we are out there, we are looking at the market and we will come back to you if there is

obviously an acquisition that makes sense that we will want to pursue.

In terms of data centers,

it is obviously a opportunity, it is a very clear opportunity.

It is a very different asset profile.

So given again that we have recently listed, our focus is very much to keep to our core and our

core is institutional office.

And so that is what we are going to sort of focus on, that is what we

are going to pursue and that the data center business over time we will review, but at today's

point there is no intent to acquire something like that.

Do you have anything on the -- in the in the pipeline right now that you all are evaluating in

terms of assets?

Quaiser Parvez

I will take that.

My name is Quaiser.

So we have – we have a strong pipeline.

There are -- there

are several assets which we continue evaluating.

We have -- we are sort of very happy to report

that we have 100% coverage in making sure that we are well aware of what is available in the

But again the guardrails of evaluating any asset continues to be fundamentally driven

by the fact that it has to be NAV accretive and DPU accretive.

More importantly in terms of what market they are in, what submarket they operate in and

particularly the quality of the assets.

Just touching briefly upon some of the organic growth

Knowledge Realty Trust

February 05, 2026

levers which is available in the portfolio is number one the portfolio has a inherent sort of wide

margin in terms of the mark-to-market opportunity which is 20% to 22%.

In addition to that we have 1.2 million square foot of development asset which will be getting

But more importantly we also have a ROFO pipeline of 6.7 million square foot which

will crystallize in the next two to three years.

So essentially the way to think about this that we

-- while we while we look at the market with the corner of our eye very, very diligently, we also

have a strong levers of growth available organically within the portfolio.

Thank you so much.

Moderator

Ladies and gentlemen, anyone who wishes to ask a question may press star and one

on their touchtone telephone.

Ladies and gentlemen, anyone who wishes to ask a question may

press star and one on the touchtone telephone.

Ladies and gentlemen, anyone who wishes to ask

a question, please press star and one on their touchtone telephone.

Moderator, if there are no other questions, we can conclude the call.

Thank you so much, sir.

Thank you, members of the management team and thank you

to all the participants for joining the Knowledge Realty Trust Q3 of FY26 Earnings Conference

If you have any further queries, please reach out to the Investor Relations team.

of Knowledge Realty Trust, we conclude today's conference call.

Thank you for joining us and

you may now disconnect your lines.