Listed REITs disburse over Rs 2,700 crore in H1 FY25, up 14%: IRA

The listed real estate investment trusts (REITs) in India distributed Rs 2,754 crore to their unitholders in the first half of the financial year 2025 (H1 FY25), up 14 per cent year-on-year (Y-o-Y), as per data provided by the Indian REITs Association (IRA). The REITs had distributed Rs 2,417 crore in the first half of FY24.

 

There are four listed REITs in India, viz., Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust. As per the Securities and Exchange Board of India (Sebi) regulations, the REITs are mandated to distribute at least 90 per cent of their taxable income. A REIT owns, operates, or finances real estate properties that generate income and allows investors to invest in real estate without having to buy and manage properties directly.

 

Further, the IRA’s data shows that, in the second quarter of the financial year 2025 (Q2 FY25), the four REITs distributed over Rs 1,383 crore to more than 2,55,000 unitholders. Meanwhile, in Q1 of this financial year, the REITs together distributed about Rs 1,371 crore to around 2,45,000 unitholders.

 

As per the IRA, the Indian REITs market manages assets worth over Rs 1,52,000 crore.

 

Moreover, since their inception around five years ago, the REITs have collectively distributed more than Rs 19,000 crore to their unitholders. The portfolios managed by these REITs cover over 125 million square feet (msf) of premium office and retail space across India.

 

According to the IRA, industry experts believe that the government's recent decision to reduce the holding period for determining long-term capital gains on REITs to 12 months is likely to broaden the investor base for this financial instrument.

 

As per the Union Budget document, the government shortened the holding period for determining long-term capital gains for business trusts, including REITs and Infrastructure Investment Trusts (InvITs), from 36 months to 12 months.