๐Ÿข REITs in India: A Complete Investor Guide โ€“ Comparison, Insights & Global Benchmarks | Profit From It
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๐Ÿข REITs in India: A Complete Investor Guide โ€“ Comparison, Insights & Global Benchmarks

Created by Piyush Patel_ in Sector Update 7 Apr 2025
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๐Ÿข REITs in India: A Complete Investor Guide โ€“ Comparison, Insights & Global Benchmarks

๐Ÿ“… Published: April 2025

โœ๏ธ By: ProfitFromIt


๐Ÿ“˜ What Are REITs?

REITs (Real Estate Investment Trusts) are companies that own and operate income-generating commercial real estate, such as:

  • Office buildings

  • Shopping malls

  • Warehouses

  • Data centers

REITs allow investors to buy shares of property portfolios โ€” just like stocks โ€” and earn:

  • ๐Ÿ’ธ Regular rental income (dividends)

  • ๐Ÿ“ˆ Long-term capital appreciation

Ideal for Retired Investors looking for Regular Income. 





๐Ÿ’ก Why Should You Invest in REITs?

Benefit

What It Means for You

โœ… Low Entry Point

Start investing from just โ‚น500โ€“โ‚น5,000

โœ… Regular Passive Income

REITs must pay 90% of rental income as dividends

โœ… Liquidity

Buy/sell anytime via stock exchanges (NSE/BSE)

โœ… Diversification

Exposure to real estate without property ownership

โœ… No Maintenance

No tenants, paperwork, taxes to manage




๐Ÿ‡ฎ๐Ÿ‡ณ Top 3 Listed REITs in India (as of 2025)

REIT

Key Cities

Dividend Yield

Occupancy Rate

Notable Tenants

Embassy Office Parks REIT

Bangalore, Pune, Mumbai, NCR

~6.0%

85โ€“88%

IBM, Microsoft, Google

Mindspace Business Parks

Mumbai, Pune, Hyderabad, Chennai

~5.8%

83โ€“86%

Barclays, Accenture

Brookfield India REIT

Noida, Mumbai, Gurugram, Kolkata

~5.5%

80โ€“83%

TCS, Deloitte, HSBC

๐Ÿ“ฅ Download Detailed Excel Comparison


๐ŸŒŽ How Do Indian REITs Compare Globally?

We analyzed major international REITs like:

  • ๐Ÿ‡บ๐Ÿ‡ธ Realty Income Corp (USA)

  • ๐Ÿ‡ธ๐Ÿ‡ฌ CapitaLand CICT (Singapore)

  • ๐Ÿ‡ฆ๐Ÿ‡บ Dexus (Australia)

  • ๐Ÿ‡ญ๐Ÿ‡ฐ Link REIT (Hong Kong)

๐Ÿ” REIT KPI Comparison (India vs Global)

Metric

Indian Avg

Global Avg

Best Performer

Dividend Yield (%)

5.8%

5.2%

Embassy (6.0%)

Net Income Margin (%)

38โ€“40%

43โ€“46%

Realty Income (46%)

EBITDA Margin (%)

60โ€“65%

66โ€“70%

Dexus (67%)

Return on Assets (%)

~5%

~5.2%

Realty Income (5.5%)

Debt-to-Equity Ratio

0.55โ€“0.65

0.68โ€“0.85

Embassy (0.55)

Price/FFO (Valuation)

18โ€“20

16โ€“18

CICT (16.5)

NAV Premium/Discount

ยฑ5%

ยฑ5%

Realty Income (+12%)

๐Ÿ“ฅ Download Global vs Indian REIT KPI Excel


๐Ÿ”ฌ Key Metrics Explained

โœ… Price to FFO (Funds From Operations)

  • Similar to P/E ratio in stocks

  • Shows how expensive a REIT is based on its actual rental cash flow

  • Lower P/FFO (10โ€“16) is generally more attractive

โœ… NAV Premium/Discount (%)

  • Tells you if REIT is over/undervalued vs its property value

  • Buy at a discount = better margin of safety

โœ… Dividend Yield

  • Indicates annual income return

  • REITs offering 5โ€“6%+ yield with strong tenants are favorable


๐Ÿš€ Future Prospects for REITs in India

Opportunity

Trend

๐Ÿ’ผ Growth of Office Space

IT & Tech driving leasing demand

๐Ÿ™๏ธ Urbanization & Tier-2 Boom

Rising commercial space value

๐Ÿ“Š SEBI Regulatory Push

Transparency and investor confidence

๐Ÿงพ Tax Efficiency Improvements

Future REITs may see tax reforms


โš ๏ธ Risks to Consider

Risk

What to Watch

๐Ÿ“‰ Vacancy Risk

Occupancy rate drops = lower income

๐Ÿ’ต Interest Rate Sensitivity

Higher rates can reduce price appeal

๐Ÿงพ Tax Policy Changes

Tax treatment of income may vary

๐Ÿงฑ Property Market Cycles

Demand-supply mismatch


โœ… Should You Invest?

If You Want...

REITs Are For You?

Passive Income Without Owning Property

โœ… Yes

Real Estate Exposure on a Low Budget

โœ… Yes

Liquidity + Regular Income

โœ… Yes

Control Over Specific Property Choices

โŒ No


๐Ÿ“Œ Final Checklist Before Investing in a REIT

โœ… Check occupancy rate >85%
โœ… Look for stable tenants (MNCs, banks)
โœ… Analyze debt ratios (LTV <40%)
โœ… Compare P/FFO & NAV Discount
โœ… Understand dividend history & payout policy


๐Ÿ› ๏ธ Tools to Help You Start

๐Ÿ“ฆ ๐Ÿ“Š Indian REITs Comparison & Template (Excel)
๐ŸŒŽ ๐ŸŒ Global vs Indian REITs KPI Dashboard (Excel)


๐Ÿ“ข Disclosure

This blog is intended for educational purposes only. It is not investment advice. Past performance of REITs does not guarantee future returns.


๐Ÿ“ž Need Help?

Want to analyze REITs for your portfolio or include them in your retirement plan?
๐Ÿ“ฉ Contact us at: WWW.PROFITFROMIT.CO.IN


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