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Investor Note PDF

REITs allow investors to own commercial real estate like offices and retail space by purchasing publicly traded shares. REITs provide benefits like accessibility to large commercial assets, regular income distributions, growth potential, and portfolio diversification. Embassy REIT is India's largest office REIT, owning 45.3 million square feet across major cities. It has distributed all earnings quarterly since listing and has grown its unitholder base to over 90,000.

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39 views2 pages

Investor Note PDF

REITs allow investors to own commercial real estate like offices and retail space by purchasing publicly traded shares. REITs provide benefits like accessibility to large commercial assets, regular income distributions, growth potential, and portfolio diversification. Embassy REIT is India's largest office REIT, owning 45.3 million square feet across major cities. It has distributed all earnings quarterly since listing and has grown its unitholder base to over 90,000.

Uploaded by

vikas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTRODUCTION TO REITs -

THE RIGHT WAY TO


INVEST IN INDIAN
COMMERCIAL

What are REITs?

REITs or Real Estate REITs allows investors to REITs are tax efficient REITs provide stable
Investment Trusts are the buy ownership in vehicles that distribute distribution yields with a
most efficient way for any commercial real estate majority of their cash capital appreciation
investor, particularly retail (offices, hotels, retail, flows as distributions opportunity inbuilt
investors, to invest in industrial, healthcare)
commercial real estate on through a publicly traded
the stock exchanges in the unit
form of shares

Why were Indian REITs created?

Historically, Indian real estate has been illiquid and REITs have been able to fill this gap by providing retail
primarily residential-focused investors a perfect investment vehicle to invest in
commercial real estate without actually having to buy,
own and manage a physical real estate asset
Benefits of REITs
Why Invest in Indian REITs?

Accessibility Transparency Liquidity


Ownership in professionally-managed Strong governance framework and REIT units are freely traded in stock
Grade A commercial assets disclosure requirements from SEBI markets like equity shares

Distributions Growth Diversification


Requirement to distribute at least Participation in capital appreciation Investment in a high-quality diversified
90% of net distributable cash flows from organic / inorganic growth portfolio across sectors / cities
semi-annually

EMBASSY REIT OVERVIEW:


Ticker: Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602)

• India’s first listed REIT and the largest • Delivering on Distributions


office REIT in Asia by area
Own and operate a word-class commercial Distributed 100% payout for 18
office portfolio consecutive quarters

45.3 msf Total Portfolio | 13 Commercial Offices | Over 90,000 Unitholders | ~ ₹8,900 crores
4 Gateway Cities (Bangalore, Mumbai, Pune, Noida) Distributions since IPO in April 2019 | ~₹30,000
240 Corporates (81% are multinationals and 47% are crores Market Capitalization
Fortune 500 companies)

• Post-tax yield – 6.1%

High Quality and Diverse Unitholders Base


Unitholder base continues to expand and diversify since listing; public float well distributed among
institutions and retail unitholders

• Evolving Unitholder Base • Increasing Acceptance of REIT as an


Investment Class
Others Sponsors
9.2% 7.7%

Retail Investors > 22x Growth in


16.2% Unitholders since IPO 90k

FIIs
40.4%
Insurers
4.0%

4k
MFs
22.5%
IPO Q3FY24

1. FIIs - Foreign institutional investors, MFs – Mutual Funds, Insurers – Insurance Companies, Retail Investors – Residents, NRIs,
HUFs, Others – Alternative Investment Funds, Trusts, Clearing Members and Body Corporates
2. Refers to unitholding pattern as of December 31, 2023

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