Subscribe for Knowledge Realty Trust Ltd IPO; Geojit Financial Services

Geojit Financial Services, Knowledge Realty Trust Ltd

Knowledge Realty Trust (KRT) owns and manages high-quality office portfolio across India. As the country’s largest office REIT by Gross Asset Value (GAV) of ₹61,998.9cr and Net Operating Income (NOI) of ₹3,432.27cr for FY25, KRT maintains a robust and diversified portfolio. As of March 31, 2025, their portfolio includes 6 city-centre offices and 23 business parks/centres, and has a tenant base of over 450 companies, comprising leading Indian corporates such as Aditya Birla Group, PhonePe, HDFC Bank Ltd, and Go Digit, alongside global multinationals including Amazon, Cisco, Google Connect, Novartis, and Siemens Ltd. India achieved record office leasing activity in CY24, with gross absorption reaching 80.3 msf., marking an 18% YoY growth. The number of Global Capability Centers (GCCs) in India grew at a CAGR of 6.1%, rising from over 700 in FY10 to more than 1,800 by February 2025, and is projected to exceed 2,100 by FY28.

Valuation and Outlook

Considering Knowledge Realty Trust’s leadership in the office REIT space, backed by experienced sponsors and management, strong geographic diversification, high-quality tenant base, projected Net Operating Income (NOI) growth of ~19% over FY26–28E, potential for capital appreciation, attractive dividend yield ( 6% -7%) and a healthy balance sheet with a low loan-to-value (LTV) ratio, we assign a 'Subscribe' rating for long-term.