Indian REITs Association (IRA) launched 'Data Benchmarking Institutions (DBIs) to provide investors detailed information on real estate investment trust. The association said this is a significant step towards empowering Indian Real Estate Investment Trusts (REITs) investors. "As a central repository of standardised and comparable data, DBIs will enhance transparency and ease of access to information in India's emerging and promising REIT sector. This initiative is crucial for building a robust information database and improving market efficiency as the REIT sector evolves," IRA said in a statement.
As part of this initiative, under SEBI's guidance, three leading financial services companies- CareEdge, CAMS, and KFintech-have launched dedicated platforms to house all key information regarding REITs, assisting investors with their investment decisions. These platforms will provide comprehensive information and comparative analysis to help investors assess the performance of various Indian REITs.
"The DBIs will offer investors access to detailed information on REIT performance, operational metrics, valuation standards, and disclosures. This will empower investors to make data-driven decisions, allowing for better investment diligence and more informed investment choices," the IRA said.
The journey of REITs in India began with the introduction of regulatory guidelines in 2014, culminating in the public launch of REITs in 2019 with the listing of Embassy REIT. Following this, two more REITs were listed on Indian exchanges-Mindspace Business Parks REIT in 2020 and Brookfield India Real Estate Trust in 2021. In May 2023, India's first retail REIT, Nexus Select Trust, was listed.
Indian REITs are required to invest 80 per cent of their portfolio in income-producing properties, pay out at least 90 per cent of net distributable cash flows to investors semi-annually.
