12,000 crore dividend distributed by REITs in four years

[ad_1]

In just four years, Real Estate Investment Trusts (REITs) have shown remarkable performance. Amidst the pandemic and significant volatility in the stock market, Four 4 REITs set up in the country raised Rs. Rs 12,000 crore has been distributed as dividend. Which is much higher than the combined dividend distributed by the realty companies included in the entire Nifty Realty Index. Currently, real estate investment trusts in the country are worth Rs. 73,000 crore equity market capitalisation, 105 million sq ft of commercial space. Which is mainly spread in the office and retail sector. Embassy REIT, which was listed for the first time in the country’s stock market in 2019, raised Rs. Rs 7,800 crore has been distributed. Presently the number of its retail unit holders has crossed 75,000.

Over the past four years, the Embassy REIT has leased out more than 10 million square feet of space. And has shown 100 percent rent recovery even amid the challenges of the pandemic. REITs provide an ideal investment vehicle for retail investors to invest in commercial real estate without having to purchase physical assets. They can invest in it through units traded in the stock market. SEBI regulations mandate that REITs pay out at least 90 per cent of cash flow as dividends on a semi-annual basis. According to Ritwik Bhattacharjee, Chief Investment Officer, Embassy REIT, the REIT provides retail investors with exposure to grade six commercial real estate in a liquid, transparent and highly regulated manner.