Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Real Estate Investment Trust is a SEBI-regulated vehicle that owns and operates income-generating real estate, distributing most rental income to unitholders.
REITs let you invest in commercial buildings like offices and malls without buying property — you earn rental income as dividends.
Indian REITs must distribute at least 90% of net distributable cash flows. Listed on stock exchanges with minimum investment thresholds. Provides real estate exposure with liquidity unlike direct property. Yield and capital appreciation depend on occupancy and interest rates.
Invest ₹50,000 in Embassy or Mindspace REIT units yielding 6% distribution yield — roughly ₹3,000 annual income plus potential unit price appreciation.
Components split into interest, dividend, and amortisation of SPV debt with differing tax treatment. Check annual statement breakdown.
REIT offers fractional ownership and exchange liquidity. Direct property gives control but requires large capital and management effort.
Vacancy, tenant defaults, rising rates affecting property valuations, and market liquidity during stress periods.