Definition
REIT IPO
A REIT IPO is the public listing of a Real Estate Investment Trust, which pools investor money to own income-generating commercial property.
A Real Estate Investment Trust holds rent-yielding assets — typically office parks and malls — and distributes most of its income to unitholders. SEBI REIT Regulations require a REIT to distribute at least 90% of its net distributable cash flows and to invest mainly in completed, income-producing property.
India's first REIT (Embassy Office Parks) listed in 2019. REIT units trade on the NSE and BSE like shares, giving retail investors access to commercial real estate with a smaller minimum investment than buying property directly.
Related terms
- InvIT IPOAn InvIT IPO is the public listing of an Infrastructure Investment Trust, which pools capital to own operating infrastructure assets like roads and power lines.
- Minimum Public ShareholdingMinimum Public Shareholding (MPS) is the SEBI rule requiring listed companies to keep at least 25% of their shares with public (non-promoter) investors.
Plain-English explainer from Investdesk Investors Encyclopedia. General information, not financial advice.