Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»REITs in Hindenburg: How investors can make profit from real estate investing
    Investments

    REITs in Hindenburg: How investors can make profit from real estate investing

    August 13, 20243 Mins Read


    Hindenburg Research’s report has cast a shadow of doubt over SEBI Chairperson Madhabi Puri Buch, raising serious allegations of conflict of interest. Among these, a key issue points to her husband, Dhaval Buch, and his advisory role at Blackstone, a major player in the Real Estate Investment Trusts (REITs) sector. 

    The report suggests that while Madhabi Puri Buch was at SEBI, Blackstone sponsored two REITs that were approved by the regulator, potentially signaling a conflict of interest. Hindenburg further alleges that Buch’s promotion of REITs during this period may have been influenced by her husband’s position.

    Both Madhabi Puri Buch and her husband have dismissed the allegations, asserting that there was no conflict of interest. They maintain that all actions were conducted transparently and in accordance with regulatory standards.

    So what exactly is REITs?

    REITs, or Real Estate Investment Trusts, are companies that own, operate, or finance income-producing real estate. Investing in REITs allows individuals to invest in large-scale, income-generating real estate without actually having to buy, manage, or finance any properties themselves. REITs typically own a diversified portfolio of real estate assets, which may include commercial buildings, shopping malls, apartments, hotels, or even infrastructure projects.

    “Today, REITs own a diversified portfolio of real estate assets, including commercial buildings, shopping malls, apartments, hotels, and infrastructure projects, allowing investors to expand their choices. Notably, India’s commercial real estate market could increase the office REIT market size by 6-6.5 times, offering more investment opportunities to those interested in exploring this avenue. In fact, India currently boasts a REIT-ready commercial supply of Rs 5.8-6.2 lakh crore across 7 key cities, with Bangalore alone accounting for nearly 31% of the supply,” said Harish Fabiani, Chairman, IndiaLand Group.

    How can you make profit from REITs?

    Investors in REITs can earn returns on their investments in two primary ways: dividends and capital appreciation. “By law, REITs must distribute at least 90% of their taxable income to shareholders as dividends. The dividend yields are generated from the total rental income of properties owned by REITs. As a result, REIT investors typically receive a regular income stream. Notably, REITs that invest in commercial properties generate at least 2–3 times higher yields than residential projects,” said Fabiani.

    In addition to dividend yields, investors can generate earnings through the appreciation of their share price in a REIT. With an increase in the underlying asset value or the acquisition of more profitable properties, the prices of REIT shares tend to surge. Additionally, investors may choose to sell their shares at a higher price than the initial investment amount to realise a capital gain. In these ways, REIT investors enjoy the benefits of their real estate investments without shouldering the responsibilities of direct property ownership.

    There are currently four REITs in India; Embassy REIT, Brookfield REIT, Mindspace REIT and Nexus Select Trust.

    What about taxation?

    Rental income generated by a REIT is transferred to investors. These investors are subject to income tax on this amount at their applicable tax rates. For Non-Resident Indian (NRI) investors, the tax rate is specifically 10%. Similarly, interest income distributed by the REIT to investors is taxed according to the investor’s individual tax bracket. Dividend income from the REIT is also taxed at the investor’s tax rate, with a 10% Tax Deducted at Source (TDS) applicable. Any other income generated by the REIT is exempt from taxation.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Pension investments: Six steps to follow when looking at your retirement savings

    Investments

    Selon un récent dépôt auprès de la SEC, Sei Investments Insider a vendu des actions pour une valeur de 12 006 823 dollars.

    Investments

    Un actionnaire de Skechers poursuit le fabricant de chaussures pour obtenir des détails sur le rachat de 9,4 milliards de dollars par 3G

    Investments

    Primorus Investments plc publie ses résultats pour l’exercice clos le 31 décembre 2024

    Investments

    Aberdeen Investments : Pruksa Iamthongthong nommée head of equities Asie-Pacifique

    Investments

    CPP Investments se retire d’Informatica par le biais d’une transaction avec Salesforce

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Property

    Le Real Madrid prêt à lâcher trois de ses joyaux !

    Cryptocurrency

    Introducing the American Federation Dollar (AFD): A Gold-Backed Digital Currency Transforming Global Finance

    Property

    Protect Your Home With Property Fraud Alerts

    Editors Picks

    Stock market today: Live updates

    July 18, 2024

    BHPs economic and commodity outlook

    August 26, 2024

    Chrysalis Investments enregistre une valeur nette d’inventaire en hausse au premier trimestre

    May 8, 2025

    Expert issues urgent warning over ‘hidden risks’ of metal straws

    October 16, 2024
    What's Hot

    Energy is high in first fully padded practice

    July 30, 2024

    Wage disparities and higher valued imports help explain the current agricultural trade deficit

    March 14, 2025

    Gold Defies Headwinds of Dollar Strength, Higher Yields, and Jobless Claims

    August 8, 2024
    Our Picks

    Klarna is about to open a technology center in Madrid – FF News

    August 19, 2024

    ARTE révèle une fraude majeure sur l’or

    March 4, 2025

    53-Year-Old Kharghar Woman Duped Of ₹78.82 Lakh In Facebook-Promoted Cryptocurrency Investment Scam; Case Registered

    May 19, 2025
    Weekly Top

    Ambiance rock garantie au Puy-Sainte-Réparade avec le groupe pop rock Silver Fox au château La Coste

    June 1, 2025

    Quand le métal devient métaphore de l’élévation : le 71e congrès des Compagnons serruriers du Devoir a réuni plus de 500 personnes à Nîmes

    June 1, 2025

    Dividend & Stock Split: TCS, Tata Motors, Coforge Among Shares To Trade Ex-Date This Week

    May 31, 2025
    Editor's Pick

    “Des frais ridicules” : une passagère priée de payer 60 euros de plus auprès de RyanAir pour embarquer avec une gourde en métal

    February 18, 2025

    Why Have CA Electric Rates Exploded? Report Blames ‘Runaway’ Spending by Utilities

    February 19, 2025

    Dorrance Announces Retirement from UNC

    August 12, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.