"The Indian REITs Association welcomes this positive development on the SEZ amendment. The growth of Grade A commercial office spaces rests on the demand the industry is witnessing from Global Captive Centres and domestic businesses, and this move is expected to boost demand," said founding members jointly.
Prices of the listed REITs have mostly fallen so far this year, but investment advisors see better prospects for this asset class in 2024 if the government eases occupancy rules in special economic zones (SEZs).
During the quarter, Mindspace REIT s net operating income (NOI) grew by 17.7% year-on-year to Rs 4,912 million. It declared distribution of Rs 2,841 million or Rs 4.79 per unit for Q2 FY24.
Mindspace Business Parks REIT, backed by K Raheja Corp, is embarking on an 800,000 sq ft mixed-use development in Mumbai region s Airoli east.The project will encompass 530,000 sq ft for commercial offices and 280,000 sq ft for a high-end hotel. Chalet Hotels, a group company, will enter into a long-term lease agreement with the REIT.
JM Financial has initiated coverage on the Indian office REITs or real estate investment trusts, with a constructive outlook as they provide stable cash flows with 6-8 percent distribution yields. Among the 3 listed REITs, the brokerage s preferred pick is Embassy REIT.