REIT quarterly distributions cross ₹3,000 crore as listed universe expands
REIT quarterly distributions cross ₹3,000 crore as listed universe expands

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REIT quarterly distributions cross ₹3,000 crore as listed universe expands

India’s listed real estate investment trusts (REITs) distributed ₹3,136 crore to unitholders in the first quarter of FY27, more than double the ₹1,559 crore distributed in the year-ago quarter, as the sector expanded to six listed trusts from four a year earlier.

The sharp year-on-year increase, however, also reflects the addition of Knowledge Realty Trust and Bagmane Prime Office REIT to the listed universe. The four REITs that were listed in both periods were Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India Real Estate Trust and Nexus Select Trust.

REITs are mandated by the regulator to distribute 90 percent of their net distributable cash flow (NDCF).

Distribution growth

Distributions rose steadily from ₹1,371 crore in Q1 FY25 to ₹1,553 crore in Q4 FY25. They were ₹1,559 crore in Q1 FY26, before jumping nearly 50 per cent to ₹2,331 crore in Q2 following the addition of Knowledge Realty Trust to the listed universe. Distributions rose further to ₹2,450 crore in Q3 and ₹2,566 crore in Q4, before rising 22 per cent to ₹3,136 crore in Q1 FY27 on the addition of Bagmane Prime Office REIT in the latest quarter.

Across the six listed REITs, cumulative distributions since inception have crossed ₹34,800 crore. The trusts together manage more than 214 million sq ft of Grade A office and retail space, with gross assets under management of over ₹3.17 lakh crore as of Q1 FY27.

“The strong distribution in the quarter, despite continued global uncertainties, is a positive start to the financial year,” said Shirish Godbole, CEO of Knowledge Realty Trust and chairperson of the Indian REITs Association. He said the growth was supported by “healthy rental collections, improving occupancy, the quality of the underlying assets and disciplined capital management by REIT managers.”

Mindspace REIT CEO and MD Ramesh Nair said the trust had recorded seven consecutive quarters of in distributions.“This performance has been supported by robust leasing and occupancy growth in our core markets, along with acquisitions that enhance portfolio scale. In addition, new growth avenues such as data centres, hotels and clubs are contributing to the evolution of our portfolio.”

The six REITs had a combined market capitalisation of over ₹2.17 lakh crore as of August 11, according to the Indian REITs Association.

Source: Business Line

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