REITs promise stable income, but investors must brace for volatility

Real estate investment trusts (REITs) distributed about ₹1,559 crore to 2.7 lakh unit holders in the first quarter of 2025-26, 13 per cent higher than the ₹1,371 crore distributed in the same quarter last year. The number of unit holders rose from 2.45 lakh to 2.7 lakh, attesting to their growing popularity.

 

REITs invest mostly in offices and malls and are regulated by the Securities and Exchange Board of India (Sebi).

 

REITs’ appeal

 

REITs are positioned as total-return products. “They offer regular income through rental distributions. By regulation, REITs must distribute at least 90 per cent of their cash flows