India’s four listed Real Estate Investment Trusts (Reits) collectively distributed 13 per cent more funds to their shareholders in fourth quarter of financial year 2024-25 (Q4FY25) at Rs 1,553 crore on year, reflecting the growing strength of the sector fuelled by strong leasing activity, especially from Global Capability Centres (GCCs).
The dividends were distributed to over 264,000 unitholders.
In the same quarter of FY24, the four listed firms -- which buy and operate real estates to generate income -- had distributed Rs 1,377 crore.
Reits are mandated to distribute at least 90 per cent of their taxable income.
According to regulations of Security and Exchange Board of India, Reit distributions are returns which can be in the form of dividend, interest, amortization of debt received from the special purpose vehicles, other income or a combination of these above-mentioned aspects.
The four Reits collectively operate more than 128.9 million square feet of grade A office and retail real estate across India’s key urban centres.
For FY25, the cumulative distribution by the four Reits -- Brookfield India Real Estate Trust, Embassy Office Parks Reit, Mindspace Business Parks Reit, and Nexus Select Trust -- reached Rs 6,070 crore.
In FY24, it was Rs 5,366 crore, marking a growth of 13 per cent.
Embassy Reit distributed Rs 538 crore in Q4FY25 and Rs 2,181 crore in the entire FY25, the most among the four firms.
“The robust quarterly distributions and expanding investor base reflect the increasing maturity and investor confidence in India’s Reit ecosystem.
"A 13 per cent Y-o-Y increase in distributions underscores the strength and stability of the sector, driven by high-quality assets and strong leasing activity, particularly from Global Capability Centres (GCCs) and strong domestic demand.
"We remain optimistic about the long-term prospects of Indian Reits amid evolving market dynamics,” said Alok Aggarwal, MD & CEO of Brookfield India Real Estate Trust and chairman of the Indian Reits Association (IRA).
The IRA is a non-profit industry body established with the support of the Sebi and the Ministry of Finance and comprises all four listed Reits as founding members.
These Reits reported an aggregate Net Operating Income (NOI) of Rs 89,100 crore in FY25, compared to Rs 76,626 crore in FY24, an increase of 16 per cent on year.
Their total revenue from operations also rose by 16 per cent on year, from Rs 97,482 crore in FY24 to Rs 1.12 trillion in FY25.
India’s Reit market manages gross assets under management (AUM) exceeding Rs 1.63 trillion, with a combined market capitalisation of over Rs 98,000 crore (as of May 14, 2025).
Since their respective inceptions, these four Reits have distributed a cumulative total of over Rs 22,800 crore to unitholders, highlighting their rising prominence among both institutional and retail investors.
© 2025