Brokerage Firm BoB Capital Markets Starts Coverage on Knowledge Realty Trust with Hold Rating

Brokerage firm BoB Capital Markets has started coverage on real estate investment trust Knowledge Realty Trust, giving the stock a hold rating. The firm set a target price of 122 rupees per share, pointing to an upside potential of up to 7 percent. Knowledge Realty Trust is expected to trade at a DPU multiple of 16.4x, which is slightly lower than the peer average of 16.6x due to a slower pace of DPU growth. BoB Capital Markets noted that Knowledge Realty Trust holds the lowest loan-to-value ratio among its peers at 18 percent as of the first quarter of fiscal year 2027, compared to the peer average of 26.2 percent. The trust also has the lowest weighted average cost of debt at about 7.23 percent, sitting slightly below the peer average of 7.3 percent. This low leverage helps reduce the trust's risk when refinancing debt. The trust relies on property location and quality to drive organic growth through better asset use. However, as of the first quarter of fiscal year 2027, the trust had 2.6 million square feet of leasable area under construction and a right of first offer pipeline of about 6.7 million square feet. Both figures sit below peer averages of 4.0 million square feet under construction and 8.35 million square feet for the pipeline. Across the market, listed office real estate investment trusts including Embassy, Mindspace, Brookfield India REIT, Knowledge Realty Trust, and Brookfield-backed Bagmane managed an average leasable area of 33 million square feet with an average committed occupancy near 93 percent. Average in-place rentals stood at 98.2 rupees per square foot per month. The brokerage firm highlighted that Embassy is the largest trust by leasable area in Bengaluru, Brookfield India REIT leads in the National Capital Region, and Mindspace leads in Hyderabad and Mumbai. In terms of stock performance, Knowledge Realty Trust has dropped 0.12 percent over the past week, 2.58 percent over the last month, and 8.22 percent on a year-to-date basis. Over a six-month period, the stock fell by a marginal 0.04 percent, while its one-year performance dropped by 0.30 percent. The shares made their market debut in August 2025, listing at a 3 percent premium on the National Stock Exchange at 103 rupees.