Prabhudas Lilladhar
REITs pool funds from a number of investors and invests them in rentgenerating real estate properties. These are usually commercial properties (offices, shopping centres, etc.) that generate rental income. SEBI requires REITs to distribute a minimum 90% of their income earned to investors on a half-yearly basis. Similarly, 90% of sale proceeds are to be paid out to unit holders, unless the amount is reinvested in another property. Thus, you get to receive regular income and also get to benefit from price appreciation, thereby boosting your returns...
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