Target: ₹130
CMP: ₹123.63
Knowledge Realty Trust (KRT) is co-sponsored by Blackstone and the Sattva Group and is the largest REIT in India in terms of NOI and GAV. The portfolio comprises a total leasable area of 46.3 msf, of which 37.1 msf is operational. With an established development and acquisition track record, the REIT commands leadership position in its three core markets – Hyderabad, Bengaluru and Mumbai.
KRT is the key beneficiary of the structural tailwinds in the commercial real estate sector with its core markets accounting for 60 per cent of total gross leasing since CY21.
Over FY25-28, we expect KRT’s NOI to grow at a healthy 14 per cent CAGR to ₹5,100 crore driven by uptick in rent-yielding occupancy, MTM gains (especially in Mumbai) and area addition of 1.2 msf. With a strong balance sheet, we expect it to actively pursue the inorganic route in the near term.
We initiate with Add rating and target price of ₹130, with potential total returns of 7.5 per cent.
Key risks: Blackstone currently owns 47 per cent stake and post serving the mandatory lock-ins under SEBI REIT Regulations, it can liquidate its holding over time, as observed in the case of other REITs; apart from the ongoing development of 1.2 msf, there is no visibility on area expansion within the portfolio; In the Mumbai portfolio, 54 per cent area is up for expiry over H2-FY26 to FY29E; and KRT’s revenue from operations is primarily generated from multinational tenants.
Published on December 22, 2025
