Knowledge Realty Trust (KRT), India's largest REIT, has successfully raised ₹500 crore through commercial paper issuance on a private placement basis. According to a regulatory filing, the borrowing committee of Knowledge Realty Office Management Services Pvt Ltd, which serves as the manager to KRT, approved the allotment of 10,000 rupee-denominated commercial papers for an aggregate principal amount of ₹500 crore. The commercial papers are valid for a term of 91 days from the date of allotment, which is May 12, 2026, at a discount. The commercial papers are proposed to be listed on the wholesale debt market segment of BSE Limited, providing liquidity and transparency to investors.
KRT reported robust financial results for FY26, with revenue increasing 16% year-on-year to ₹45,772 million and Net Operating Income (NOI) rising 18% to ₹40,484 million. The company achieved 92% portfolio occupancy with cumulative leasing of 3.5 million square feet during the year. In-place rents grew 7% YoY, while the company realized a leasing spread of 26% during FY26. New leasing rents were achieved at a 5% premium to market rents, demonstrating strong pricing power in the commercial real estate market.
The Board declared a Q4 distribution of ₹1.616 per unit, totaling ₹7,166 million for the quarter, with a record date of May 16, 2026. The cumulative distribution for FY26 aggregates to ₹4.74 per unit, totaling ₹21,019 million since listing in August 2025. The Trust's portfolio comprises 46.5 million square feet of Grade-A office assets spread across six cities, with 95% of Gross Asset Value located in India's best-performing office markets. KRT also raised ₹42,000 million in debt at a blended cost of 7.3%, reducing its cost of debt from 8.6% to 7.2% through high-cost debt replacement.
KRT maintains its position as India's largest REIT, backed by Blackstone and Sattva Group. The REIT commenced construction of a new 1.4 million square feet block at Sattva Global City in Bengaluru, demonstrating continued expansion in premium office assets. The company's loan-to-value ratio stands at 18%, providing headroom for future growth initiatives. This ₹500 crore commercial paper issuance represents a significant development in the real estate investment trust sector, demonstrating KRT's ability to access capital markets for expansion financing while supporting its growth strategy in the commercial real estate segment.
