As per SEBI regulations, REITs and InvITs are required to distribute at least what percentage of their net distributable cash flows to unit holders?

Under the regulations set by the Securities and Exchange Board of India (SEBI), specifically the SEBI (Real Estate Investment Trusts) Regulations, 2014, and the SEBI (Infrastructure Investment Trusts) Regulations, 2014, both REITs and InvITs are mandated to distribute a significant portion of their earnings to investors. Both entities must distribute at least 90% of their Net Distributable Cash Flows (NDCF) to their unit holders.

• For REITs, the distribution must be made at least once every six months (semi-annually).
• For public InvITs, the distribution must also occur at least once every six months, though many choose to distribute on a quarterly basis.
• Dividend Treatment: The cash flows typically consist of dividends, interest income, and sometimes the repayment of debt. 

This regulatory requirement ensures that these investment vehicles function as income-generating instruments, providing regular liquidity to investors while enjoying certain tax pass-through benefits