REITs & InvITs
Owning a slice of Grade-A offices or infrastructure without the ₹5 Cr ticket or the tenant calls. Rent arrives as quarterly payouts; the units trade on the exchange like a share.
What it actually is
Listed trusts that own rent-earning real estate (REITs) or infrastructure like roads, power lines and towers (InvITs). They must pay out at least 90% of net cashflow to unit-holders — real-asset income with stock-market liquidity.
The job it does
- Regular income backed by physical assets
- Property exposure without betting on one building
- Rental escalations that track inflation
Why people use it
- Quarterly payouts with exchange liquidity
- SEBI-regulated, independently valued portfolios
- Far more diversified than one flat or shop
What can go wrong
- Unit prices move with markets and interest rates
- Occupancy and rental cycles affect payouts
- Payout mix — and its tax — varies trust to trust
Does REITs & InvITs belong in your architecture?
Seven questions narrow thirteen structures to a shortlist.
Content on this site is for education only and is not investment advice or an offer to sell any product. Past performance does not guarantee future results. Please consult your Chartered Accountant and read all scheme documents before investing.