India’s six publicly listed Real Estate Investment Trusts (REITs) distributed Rs 3,136 crore to more than 4.85 lakh unitholders during the first quarter of FY27, marking a sharp increase in payouts compared with the same period a year earlier.

The distribution stood at Rs 1,559 crore in Q1 FY26 and Rs 1,371 crore in Q1 FY25. The latest figure, however, includes six listed REITs compared with four in each of the previous two years, following the inclusion of Knowledge Realty Trust and Bagmane Prime Office REIT.

The six listed trusts comprise Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, Knowledge Realty Trust and Bagmane Prime Office REIT. Together, they have emerged as a significant channel for investment in income-generating commercial real estate.

The Indian REIT sector’s gross Assets Under Management (AUM) exceeded Rs 3.17 lakh crore as of Q1 FY27, while the combined market capitalisation of the six listed REITs stood at more than Rs 2.17 lakh crore as of August 11, 2026.

The six trusts collectively manage more than 214 million square feet of Grade A office and retail assets across India. Since their inception, they have distributed more than Rs 34,800 crore to unitholders, highlighting the increasing scale of REITs in India’s capital markets.

The latest distribution comes despite continued global uncertainties, with the Indian REITs Association pointing to healthy rental collections, improving occupancy levels, asset quality and disciplined capital management as key factors supporting cash flows.

Shirish Godbole, Chief Executive Officer of Knowledge Realty Trust and Chairperson of the Indian REITs Association, said the strong Q1 distribution reflected the resilience of Indian REITs and their ability to provide regular and stable cash flows to unitholders.

Investor Participation Gains Importance

Godbole said the Indian REIT market could play a larger role in the country’s capital markets as the sector matures, investor participation increases and policy reforms provide further support. He also highlighted the importance of rental collections, occupancy and underlying asset quality in sustaining distributions.

The sharp rise in aggregate payouts also reflects the broadening of India’s listed REIT market. While four trusts featured in the Q1 FY25 and Q1 FY26 distribution figures, the Q1 FY27 data covers six listed trusts, expanding the pool of assets and investors represented in the sector.

The Indian REITs Association was established in 2023 under the guidance of the Securities and Exchange Board of India and the Ministry of Finance. It is a non-profit industry body focused on promoting awareness, education and the growth and development of the REIT sector in India.