REITs: High Payouts, Steady Returns

Ratin Biswass / 30 Oct 2025/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund

The story on Real Estate Investment Trusts (REITs) receiving equity status was truly insightful

The story on Real Estate Investment Trusts (REITs) receiving equity status was truly insightful. I’m now considering adding REITs to my portfolio as well. I just wanted to confirm if REITs really have to distribute 90 per cent of their profits to unitholders, as that seems quite substantial. - Vishal Khandelwal[EasyDNNnews:PaidContentStart]

Editor Responds : Yes, REITs are indeed required to distribute at least 90 per cent of their net distributable income to unitholders, which might seem high but is actually one of their key attractions. This rule ensures regular income for investors, making REITs a hybrid investment offering both stable yield and long-term capital appreciation potential. The high payout ratio limits reinvestment but enhances transparency and trust. For investors, it is a reliable way to gain exposure to the real estate market without directly owning property. With India’s growing commercial real estate demand, REITs offer an appealing mix of income stability and steady growth potential.

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