Knowledge Realty Trust shares rise after two analysts recommend a 'buy'

Shares of Knowledge Realty Trust, the Blackstone and Sattva Group-backed real estate investment trust, opened up to 3% higher on Monday, September 22, after two brokerage firms initiated coverage on the stock.

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.

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.

Additionally, a recent SEBI update granting equity status to REITs is expected to help widen the investor base.

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.