Knowledge Realty Trust REIT owns and manages a high-quality office portfolio in India, and upon listing, they will be the largest office REIT in India based on Gross Asset Value ('GAV') of Rs 6,19,989 million as of March 31, 2025 as well as by Net Operating Income ('NOI') for FY 2025 of Rs 34,322.67 million. The Portfolio comprises 29 Grade A office assets totaling 46.3 msf as of March 31, 2025, with 37.1 msf of Completed Area, 1.2 msf of Under Construction Area and 8.0 msf of Future Development Area. They expect to be the most geographically diverse office REIT in India upon listing with Portfolio Assets spread across 6 cities which collectively represent more than 86.5% of both of India's office supply and gross absorption from CY2016 to Q1CY2025. The Portfolio comprises 6 city-center offices and 23 business parks/centers. The Portfolio Assets house a diversified tenant mix of prominent multinational tenants, including Fortune 500 companies and Global Capability Centers ('GCCs'), as well as leading domestic corporates. The geographic diversity also provides flexible leasing options to tenants seeking expansion across multiple locations. With a diverse tenant base of more than 450 tenants as of March 31, 2025, they cater to both categories of office occupiers in India, namely domestic tenants focusing on the Indian market ('Office for India') and multinational and GCC tenants catering to the global markets ('Office for the World'). The Portfolio Assets are spread across 6 cities, namely Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram and GIFT City, Ahmedabad. A significant portion of the Portfolio (approximately 95.6% of GAV as of March 31, 2025), is located in Bengaluru, Hyderabad and Mumbai. Within the Portfolio Core Markets, select sub-markets, such as Outer RingRoad ('ORR') in Bengaluru, Bandra Kurla Complex and Surrounding Areas ('BKC and BKC-O') inMumbai and IT Corridor—HITEC City in Hyderabad offer favorable real estate fundamentals and command premium rents due to limited availability of quality office stock, advanced social infrastructure, excellent connectivity and proximity to dense residential catchments. The Portfolio has a Committed Occupancy of 91.4% as of March 31, 2025, which will be the highest compared to other listed Indian office REITs. The Portfolio Assets serve a diversified tenant base with 74.1% of Gross Rentals from multinational tenants, 43.6% from GCCs and 38.2% from Fortune 500 companies for the month ended March 31, 2025. The city-center office buildings provide high-quality infrastructure to prominent multinational corporates such as Amazon, Cisco and Franklin Templeton Asset Management (India) Private Limited, and house distinguished domestic organizations such as HDFC Bank Ltd and Aditya Birla. Most of the business parks/centers are located in Bengaluru and Hyderabad and serve notable GCC tenants such as Apple, Google Connect, Novartis and Goldman Sachs. The Portfolio's 61.7% Retention Rate from FY2023 to FY2025, supporting over 275,000 employees working across the Portfolio Assets as of March 31, 2025. The Portfolio Assets offer a wide range of amenities, such as multi-cuisine food courts, exclusive members-only clubs, indoor and outdoor sports facilities, medical clinics, creche, and other health and recreation facilities. As per financial performance, Knowledge Realty Trust REIT has posted total income/net profits of Rs 3,115.97 Cr / Rs 222.52 Cr (FY23), Rs 3,588.47 Cr / Rs 339.66 Cr (FY24) and Rs 4,146.86 Cr / Rs 219.24 Cr (FY25). So as per financial data, company has posted good growth. As per financials, Knowledge Realty Trust REIT has shown steady growth. Main assets of company is located in Bengaluru, Hyderabad and Mumbai, which is more than 90% of its portfolio. It's a pure long-term story for steady rewards with capital appreciation. So, we give NEUTRAL rating for this REIT and one may invest with medium to long-term view and steady cash-flows as per distribution policy.
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