Four Listed REITs Disburse ₹1,505 Crore to 2.6 Lakh Unitholders in Q3 FY25: Indian REITs Association Report

Four listed real estate investment trusts (REITs) distributed Rs. 1,505 crores to over 2,60,000 unitholders during the third quarter of the current financial year, as per data from the Indian REITs Association (IRA). This represents a 17% increase from the Rs. 1,289 crores distributed in the same period last year.

The four publicly listed REITs in India are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. These entities manage a significant portfolio of Grade A office and retail properties across key urban centers.

According to IRA data, the total Assets Under Management (AUM) of Indian REITs stands at approximately Rs. 1,52,000 crores. The market capitalization of these REITs exceeded Rs. 95,000 crores as of February 7, 2025. The combined portfolio of these investment trusts covers over 126 million square feet of commercial space.

The distribution of income by REITs has been consistent across the financial year. In the first quarter, the four REITs collectively distributed Rs. 1,371 crores to over 2,45,000 unitholders. In the second quarter, they disbursed Rs. 1,383 crores to more than 2,55,000 unitholders. The latest Q3 disbursement of Rs. 1,505 crores indicates continued growth in the sector.

Since their inception, these REITs have distributed a total of over Rs. 21,000 crores to unitholders. The steady rise in distributions reflects stable rental income from commercial properties, high occupancy rates, and an overall expansion of the REIT market in India.

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REITs have emerged as a preferred investment vehicle for retail and institutional investors looking for stable income streams. Their structured payouts, typically sourced from rental income and capital appreciation, make them an attractive investment option. The growth in disbursements suggests a healthy performance of the underlying real estate assets.

Industry analysts indicate that the expansion of Grade A office and retail spaces in India is driving higher rental yields, benefiting REIT investors. The increasing participation of global institutional investors in Indian REITs is also contributing to market growth.

The IRA report further highlights that commercial real estate demand remains strong in major cities, supported by leasing activity from multinational corporations and domestic businesses. This demand ensures sustained cash flows for REITs, enabling consistent distributions to unitholders.

With the REIT market continuing to expand, future growth will depend on macroeconomic conditions, interest rate movements, and corporate demand for office spaces. The increasing investor base in REITs suggests a positive outlook for the sector in the coming years.