Knowledge Realty Trust Shares Surge on Analyst Buy Recommendations
Shares of Knowledge Realty Trust, backed by Blackstone and Sattva Group, saw a 3% increase on Monday following buy recommendations from Morgan Stanley and BoFA Securities. The analysts cited the REIT's strong defensive profile, rising cash flows, and low leverage as key positives.
Real EstateReitKnowledge Realty TrustBlackstoneSattva GroupReal EstateSep 22, 2025
Morgan Stanley has initiated coverage on Knowledge Realty Trust with an 'Overweight' rating and a price target of ₹122. The foreign brokerage cited Knowledge Realty's defensive profile, steadily rising cash flows, low leverage, and potential for acquisitions as key positives.
Strong GCC-led office demand and the company's scale, along with the highest tax-free yield among listed Indian REITs, support the overweight rating, the brokerage said. This indicates a strong belief in the company's ability to maintain and grow its value in the market.
BoFA Securities has also initiated coverage on Knowledge Realty Trust with a 'Buy' rating and a price target of ₹110. Key features highlighted by the brokerages include KRT's geographic diversification, high exposure to GCC tenants, low exposure to IT services, a healthy balance sheet with around 20% leverage, and exposure to floating debt.
The REIT is sponsored by Blackstone and Sattva, two well-known names in the real estate and investment sectors. This sponsorship adds a layer of credibility and financial strength to the REIT, which is crucial for investor confidence.
Additionally, a recent SEBI update granting equity status to REITs is expected to help widen the investor base. This regulatory change is significant as it can attract a broader range of investors, including retail investors, who were previously hesitant to invest in REITs.
At present, shares of Knowledge Realty Trust are trading 0.38% higher at ₹112.79. The stock has risen 5% in the last one month, reflecting the positive sentiment from the market and the strong fundamentals of the company.
Investors are looking forward to the continued growth and stability of Knowledge Realty Trust, driven by its strategic advantages and the support from its sponsors. The combination of a strong market position and favorable regulatory changes positions the REIT well for future success.
Frequently Asked Questions
What is Knowledge Realty Trust?
Knowledge Realty Trust is a real estate investment trust (REIT) backed by Blackstone and Sattva Group. It focuses on commercial real estate and is known for its strong defensive profile and steadily rising cash flows.
Why did Morgan Stanley recommend an 'Overweight' rating for Knowledge Realty Trust?
Morgan Stanley recommended an 'Overweight' rating for Knowledge Realty Trust due to its defensive profile, steadily rising cash flows, low leverage, and potential for acquisitions. The firm also highlighted the strong GCC-led office demand and the highest tax-free yield among listed Indian REITs.
What is the price target set by BoFA Securities for Knowledge Realty Trust?
BoFA Securities has set a price target of ₹110 for Knowledge Realty Trust, based on the company's geographic diversification, high exposure to GCC tenants, low exposure to IT services, healthy balance sheet, and exposure to floating debt.
How has the recent SEBI update impacted Knowledge Realty Trust?
The recent SEBI update granting equity status to REITs is expected to help widen the investor base for Knowledge Realty Trust. This regulatory change can attract a broader range of investors, including retail investors, who were previously hesitant to invest in REITs.
What is the current trading price of Knowledge Realty Trust shares?
As of the latest update, shares of Knowledge Realty Trust are trading 0.38% higher at ₹112.79. The stock has risen 5% in the last one month, reflecting positive market sentiment and the company's strong fundamentals.
Related News Articles
Ex-Police Officer Charged with Rs 1.80 Crore Real Estate Fraud in Jammu
The Crime Branch (EOW) Jammu has filed a charge-sheet against a former police officer for a real estate fraud worth Rs 1.80 crore, involving a reputed doctor's wife in Jammu.
Navi Mumbai Residents Rejoice as CIDCO Announces Freehold Land Conversion
The City and Industrial Development Corporation of Maharashtra (CIDCO) chairman, Sanjay Shirsat, has announced the conversion of leasehold land to freehold, bringing relief to Navi Mumbai residents.
Birla Estates Achieves Rs 6 Billion in Housing Sales: A New Benchmark in the Industry
Birla Estates has set a new standard in the housing market with its focus on design and market knowledge, with Bengaluru being a key hub for the company's success.
Indian Real Estate Giants Slash Debt, Bookings Surge to Record Highs
Mumbai: The top eight listed real estate developers in India have drastically cut their net debt by 54% in the first quarter of the current fiscal year (FY25) from the peak in FY19, according to a recent report. This reduction has been accompanied by a su
Maha Assembly Polls: Ajit Pawar to Clash with Two Nephews in Baramati and Karjat-Jamkhed
NCP chief and Deputy Chief Minister Ajit Pawar is set to face a significant challenge in the upcoming Maharashtra Assembly elections, as he takes on two of his nephews, Yogendra Pawar and Yash Pawar, in the Baramati and Karjat-Jamkhed constituencies.
2025 Outlook: Private Capital Market in India
Experts believe that the growth of the private capital market in India, including venture capital, private equity, and private debt, will be driven by new age businesses and a vibrant startup ecosystem.