Mumbai, November 18, 2024: Four listed real estate investment trusts (REITs) have distributed a total of Rs 2,754 crore to their unitholders during the first half of the current financial year, as per data from the Indian REITs Association (IRA). This represents an almost 14% increase from the Rs 2,417 crore distributed in H1 of the previous fiscal year. These four publicly listed real estate investment trusts (REITs) in India are Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust.
The IRA’s data shows that, in Q2 alone, these four REITs distributed over Rs 1,383 crore to more than 2,55,000 unitholders. In the Q1 of this fiscal, these four REITs together distributed more than Rs 1,371 crore to around 2,45,000 unitholders.
The Indian REIT market now manages assets worth over Rs 1,52,000 crore.
Since their inception around five years ago, these REITs have collectively distributed more than Rs 19,000 crore to unitholders. The portfolios managed by these REITs cover over 125 million square feet of premium office and retail space across India.
The Indian REITs Association, a non-profit organization established under the guidance of the Securities and Exchange Board of India (SEBI) and the Ministry of Finance, counts Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust among its four founding members.
Industry experts believe that the government’s recent decision to reduce the holding period for determining long-term capital gains on Real Estate Investment Trusts (REITs) to 12 months is likely to broaden the investor base for this financial instrument.
According to the Union Budget document, the government has 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.
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