Indian Reits distributed over ₹2,450 cr to 380K unit holders in Q3FY26

India's five listed REITs distributed over Rs 2,450 crore to 380,000 unitholders in Q3 FY26, backed by strong leasing momentum, improving occupancies and regulatory moves expanding access to capital

India's five publicly listed Real Estate Investment Trusts (Reits) collectively distributed over Rs 2,450 crore to more than 380,000 unitholders during the third quarter of financial year 2025-26 (Q3 FY26), according to India Reits Association.

 

Industry executives say that the sector’s performance was supported by steady demand for high-quality office and retail assets across key markets.

 

“Healthy leasing activity, improving occupancy and rental growth reflect the strength of India’s commercial real estate ecosystem,” said Alok Aggarwal, managing director and CEO of Brookfield India Real Estate Trust and chairperson of IRA.

 

Reits are investment vehicles that own or operate income-generating real estate, enabling investors to earn a share of the income produced without directly purchasing properties.

 

India’s listed Reits include Brookfield India Real Estate Trust, Embassy Office Parks Reit, Knowledge Realty Trust, Mindspace Business Parks Reit and Nexus Select Trust.

 

Together, these five trusts manage a portfolio spanning over 185 million square feet (msf) of Grade A office and retail space across India. “Since inception, they have cumulatively distributed over Rs 29,100 crore to unitholders, highlighting their growing significance in India’s capital markets,” the IRA said in a statement.

 

As of Q3 FY26, the total gross Assets Under Management (AUM) of the Indian Reit market stands at over Rs 2.5 trillion.

 

With recent regulatory proposals such as allowing banks to lend directly to Reits and dedicated Reits for Central Public Service Enterprises (CPSEs), the vehicles are expected to further boost the sector by expanding access to high-quality assets.

 

Earlier this month, the Reserve Bank of India’s (RBI’s) proposal to allow banks to lend directly to Reits made it easier for the trusts to speed up retail and expand office assets by raising funds at lower rates.

 

Banks were earlier restricted from lending directly to the Reits, with the trusts having to borrow through their special purpose vehicles (SPVs) or rely on issuing bonds and raising equity in the capital markets.

 

“With greater financial flexibility and access to long-term capital, Reits will be better positioned to support portfolio expansion and contribute to the formalisation and institutionalisation of India’s commercial real-estate sector,” the Indian Reit Association (IRA) said earlier.

 

Aggarwal added that with disciplined execution and a focus on long-term value creation, Reits are strengthening their position as transparent and reliable income-generating investment platforms for investors.