Unitholders of four listed real estate investment trusts (REITs) have received a total of ₹2,754 crore during the first half of the current financial year which is an almost 14% increase from the ₹2,417 crore distributed in H1 of the previous fiscal year, as per data shared by the Indian REITs Association (IRA).
The 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 REITs distribute income to unitholders in the form of dividends among others.
The IRA’s data shows that in Q2 alone, the four REITs distributed over ₹1,383 crore to more than 2,55,000 unitholders. In the Q1 of this fiscal, these four REITs together distributed more than ₹1,371 crore to around 2,45,000 unitholders.
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“The Indian REIT market now manages assets worth over ₹1.52 crore. Since their inception around five years ago, these REITs have collectively distributed more than ₹19,000 crore to unit holders. The portfolios managed by these REITs cover over 125 million square feet of premium office and retail space across India,” IRA said in a statement.
What is IRA?
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.
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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, the IRA statement added.
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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, the IRA statement added.
