REITS IN INDIA
PRESENTATION BY GROUP 4
Introduction to
REIT’S
Definition
Purpose and Significance
How REIT’S Function
Evolution of HISTORICAL BACKGROUND
REIT’S in
India
COMPARISON WITH GLOBAL REIT
MARKETS
REGULATORY FRAMEWORK
INTRODUCTION (SEBI’S ROLE)
Strucuture of
REIT’S in India
Key components: Sponsors, Managers, Trustees,
and Unit Holders
Mandatory investment guidelines
Types of real estate assets allowed
Types of REITs
EQUITY MORTGAGE HYBRID
MIX OF EQUITY & MORTGAGE
OWN & MANAGE REAL ESTATE. INVEST IN MORTGAGES/MBS.
REITS.
EARN FROM RENT. EARN FROM INTEREST.
EARN FROM RENT & INTEREST.
SENSITIVE TO PROPERTY MARKET. AFFECTED BY INTEREST RATES.
OFFERS DIVERSIFICATION.
.
Benefits of Investing
DIVERSIFICATION AND TRANSPARENCY AND LOWER CAPITAL
LIQUIDITY REGULATORY REQUIREMENT
OVERSIGHT COMPARED TO DIRECT
REAL ESTATE
INVESTMENT
Risks and challenges
INTEREST RATE IMPACT ON REGULATORY AND MARKET VOLATILITY AND ECONOMIC
REITS TAXATION CHALLENGES FACTORS
REIT’S V/S OTHER
OPTIONS
COMPARISON WITH STOCKS, MUTUAL FUNDS,
AND DIRECT REAL ESTATE
RISK-RETURN PROFILE
SUITABILITY FOR DIFFERENT INVESTOR TYPES
Future Outlook
GROWTH GOVERNMENT
EMERGING TRENDS
POTENTIAL INITIATIVES AND
(E.G., RETAIL REITS,
AND MARKET POLICY SUPPORT
DATA CENTER REITS)
EXPANSION
FUN QUIZ!
Which of the following is a What is the primary risk Which type of REIT
characteristic of a Real associated with Mortgage primarily owns and
Estate Investment Trust REITs (mREITs)? operates income-
(REIT)? generating real estate
properties?
REITs are taxed at both corporate and Interest rate risk
shareholder levels.
Mortgage REITs (mREITs)
REITs must distribute at least 90% of Liquidity risk
their taxable income as dividends.
Private REITs
REITs primarily invest in fixed-income Default risk of tenants
securities. Equity REITs
REITs are only available to institutional Regulatory risk
investors. Hybrid REITs
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Conclusion
SUMMARY
INVESTMENT CONSIDERATIONS
FINAL THOUGHTS ON REITS IN INDIA
THANK YOU
PRESENTATION BY -
DIVIT CHANDNA
KARTIKEYA CHAWLA
ADITYA SHUKLA