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REITs Gave Better Returns Than Markets In FY25 As Distributions Rose
- India's four publicly listed real estate investment trusts outperformed India's benchmark indices in fiscal 2025 with a 12% improvement in distributions per unit.
- Listed REITs' distributions were significantly higher compared to the 5.1% returns of BSE Sensex and 5.3% advance of NSE Nifty 50 in fiscal 2025.
- Nifty Realty experienced a 5.5% decline during the financial year.
- Distribution per unit is the cash amount a REIT distributes to each unit holder, representing a major source of investor returns.
- Nexus showed the highest growth among listed trusts, with an 18% year-on-year increase in distribution per unit.
- Mindspace, Brookfield, and Embassy also saw growth in their distributions per unit, with Mindspace leading at over 14%.
- Embassy and Nexus anticipate improved distributions in the next fiscal, aiming for up to a 13% and 10% increase, respectively.
- In the fourth quarter of fiscal 2025, the four REITs collectively distributed over Rs 1,553 crore to unitholders, marking a 13% year-on-year increase.
- Embassy and Mindspace had distributable cash flows of Rs 496 crore and Rs 284 crore, respectively, for the March quarter.
- Nexus Select and Brookfield's distributions for the quarter were Rs 303 crore and Rs 204 crore, respectively.
- Knowledge Realty Trust, backed by Blackstone and Sattva Developers, filed for an IPO worth Rs 6,200 crore in March as the largest office REIT in India.
- Upon listing, Knowledge Realty will be the country's fifth REIT and the fourth managed by Blackstone.
- The Indian REIT market continues to show growth and potential for investors, with REITs offering attractive returns and distributions.
- The real estate sector remains dynamic, with REITs playing a significant role in providing investment opportunities.
- The performance of REITs in FY25 highlights their appeal to investors seeking returns higher than traditional market indices.
- REITs' consistent distributions and growth prospects make them an attractive investment avenue in the Indian real estate market.
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