BoFA Securities has initiated coverage on Knowledge Realty Trust (KRT) with a buy rating and a target price of ₹110, citing its diversified portfolio, strong sponsorship, and sectoral tailwinds. The brokerage said KRT is the most geographically diverse REIT, with high exposure to global capability centres (GCCs) and limited exposure to IT services.
It added that the REIT has a healthy balance sheet with leverage at around 20% and exposure tilted towards floating-rate debt. KRT is sponsored by Blackstone and Sattva, which BoFA said adds credibility and operational strength.
A recent SEBI update granting equity status to REITs is expected to broaden their investor base, providing additional liquidity support for the segment. BoFA said KRT’s positioning and sponsor strength make it well placed to benefit from these regulatory developments and the structural demand growth for commercial real estate.
Disclaimer: The views and recommendations made in this article are those of BoFA Securities. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
