Indian REITs Distribute Over ₹6,000 Crore in FY25, Marking 13% Annual Growth

In a significant development for India’s real estate investment landscape, the country’s 4 publicly listed Real Estate Investment Trusts (REITs) — Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust — collectively distributed ₹6,070 crore ($709 million) to unitholders in FY25. This marks a 13% increase from ₹5,366 crore ($627.45 million) distributed in FY24.

Embassy REIT Leads with Highest Distribution

During the fourth quarter of FY25 alone, these four REITs distributed over ₹1,553 crore ($181.6 million) to more than 2.64 lakh unitholders, compared to ₹1,377 crore ($161 million) in the same period last year. Among them, Embassy REIT emerged as the leader, distributing ₹538 crore ($62.9 million) in Q4 and ₹2,181 crore ($255 million) for the full year.

SEBI Guidelines Drive Transparency

As per guidelines by the Securities and Exchange Board of India (SEBI), REITs are required to distribute at least 90% of their taxable income. This regulatory clarity continues to strengthen investor confidence and ensure consistent returns to unitholders.

Financial Performance Fuels Growth

The rise in distributions is supported by a robust financial performance across the REIT sector. For FY25, the aggregate Net Operating Income (NOI) of the four REITs reached ₹89,100 crore ($10.42 billion), up 16% from ₹76,626 crore ($8.96 billion) in FY24.

Similarly, revenue from operations also saw a 16% year-on-year growth, rising to ₹1,12,000 crore ($13.10 billion) from ₹97,482 crore ($11.40 billion).

Growing Market Size and Reach

India’s REIT market continues to scale up, now managing gross assets under management (AUM) of over ₹1,63,000 crore ($19.06 billion) and commanding a combined market capitalisation exceeding ₹98,000 crore as of May 14, 2025.

Together, these four REITs manage more than 128.9 million sq. ft. of Grade A office and retail real estate across India’s leading urban centres. Since inception, they have cumulatively distributed over ₹22,800 crore ($2.67 billion) to their investors.

Read More: Difference Between REIT and InvIT: Meaning & Types. 

Sector Backed by Institutional Support

The Indian REITs Association (IRA), formed with the support of SEBI and the Ministry of Finance, includes all four REITs as founding members. Commenting on the sector’s strong performance, Mr Alok Aggarwal, Managing Director & CEO of Brookfield India REIT and Chairman of the IRA, credited strong leasing activity and investor trust as primary drivers behind this year’s growth.

Conclusion

With continued regulatory support, strong fundamentals, and increasing investor participation, India’s REIT ecosystem has demonstrated its growing importance in the country’s commercial real estate and capital markets.
 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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