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India's four publicly listed Real Estate Investment Trusts (REITs) have reported a 13% year-on-year increase in distributions to unitholders, totalling INR 6,070 crore in the past fiscal year. The Indian REITs Association (IRA) revealed that the cumulative distribution for the March quarter amounted to over INR 1,553 crore, benefiting over 2.64 lakh unitholders. The four REITs Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust - have collectively achieved significant revenue growth, with net operating income rising by 16% to INR 89,100 crore in FY25. Industry leaders attribute the surge to strong leasing activity from global capability centres and robust domestic demand.
India's four publicly listed Real Estate Investment Trusts (REITs) collectively distributed INR 6,070 crore to unitholders in the last fiscal year, marking a 13% increase compared to the previous year, according to the Indian REITs Association (IRA). The rise in distributions has been attributed to higher rental income and an expansion of portfolios across the REITs. Advertisement
Last week, the IRA disclosed that these four REITs distributed over INR 1,553 crore to more than 2.64 lakh unitholders during the March quarter, up from INR 1,377 crore during the same period a year ago. For the entire fiscal year 2024-25, the cumulative distribution by the REITs rose from INR 5,366 crore in the preceding fiscal year to INR 6,070 crore.
The four REITs in India, namely Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust, have demonstrated notable financial performance. The net operating income of these REITs surged by 16% year-on-year to reach INR 89,100 crore in FY25, up from INR 76,626 crore in the previous fiscal year. Total revenue from operations also increased by 16%, climbing from INR 97,482 crore in FY24 to INR 1,12,802 crore in the last fiscal year.
Alok Aggarwal, Managing Director and CEO of Brookfield India Real Estate Trust and Chairman of the IRA, stated that the strong quarterly distributions and expanding investor base reflect the growing maturity and investor confidence in India's REIT sector. Aggarwal noted that the 13% rise in distributions underscores the sector's resilience, driven by high-quality assets and robust leasing demand, particularly from global capability centres (GCCs) and strong domestic market activity. He further expressed optimism regarding the long-term outlook for Indian REITs amid evolving market conditions.
Peush Jain, Managing Director of Commercial Leasing and Advisory at Anarock Group, stated that the increase in distributions highlights the growing acceptance of REITs as a viable asset class among institutional and retail investors. Jain emphasised that REITs are expected to play a significant role in shaping the office market landscape in 2025 and beyond.
Similarly, Shrinivas Rao, CEO of Vestian, noted that the REIT market is expanding rapidly in India with increased participation from prominent developers and investors. Rao asserted that REITs are now a vital investment tool for diversifying portfolios and ensuring steady income for investors.
According to the IRA, the Indian REIT market's gross Assets Under Management (AUM) stood at over INR 1.63 lakh crore, with a combined market capitalisation exceeding INR 98,000 crore as of last week. The four REITs collectively operate more than 128.9 million sq ft of Grade A office and retail real estate across major urban centres in India.
Since their respective inceptions, these REITs have distributed a cumulative total of over INR 22,800 crore to unitholders. The IRA, a non-profit industry body supported by the Securities and Exchange Board of India (SEBI) and the Ministry of Finance, was established to promote the interests of Indian REITs, with all four listed REITs as founding members.
As industry leaders highlight, the rise in distributions has been propelled by robust leasing demand from global capability centres and a strong domestic market. Additionally, the increase in net operating income and revenue from operations reflects the strength of high-quality assets held by these REITs. With the REIT market expanding rapidly in India, driven by greater participation from large developers and investors, the sector is poised for further growth and could play a pivotal role in shaping the country's commercial real estate landscape in the years ahead.
Source - PTI
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