Hello people, I have been reading lot of basic information on REITs and InvITs from last few days. And i think i am ready to start investing. Is there any one in this group invested in these products… It will be great to reach out and understand their experience. Embassy and Indigrid seems to be giving good distributions in last few years and hence holding my interest. Mindspace just got listed and hence no history. Personally I do not have any money in RE and I think this will be a good start. Let me know if someone has already invested…
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@AJ007 Hai , its very good product to diversify in your portfolio , i have invested REIT and INVIT also , recently only i buy IRB inVIT , because of the lockdown the price came down i buy yesterday only , these products have steady dividend to pay investor every quarterly , i invested 2 lakhs each for my portfolio diversification and for cash flow also , n my overall portfolio its take space at 5%
Thank you for the response. I am interested to dive into Embassy and Indigrid. I don’t see IRB give good distribution in the past, maybe I am not looking at the right place… For REIT, did u also invest in Embassy?
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in REIT i invested in embassy
in INVIT - irb and indiagrid i invested
You must have got good distribution in Embassy and Indiagrid till today… Will you be able to tell how much amount u received vs the amount u invested… The online disclosures says around 12%…
IN embasy 11%
irb -expected 16%
indiagrid-12%
see they will increase the dividend every year , when the rent increase when the power transmission tariff increase your dividend also increase —
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Hello,
I have been following IRB-InvIT (invested as well) for a while… So I will just limit my discussion to just that.
Firstly, IRB-InvIT is predominantly based on the B-O-T (Build-Operate-Transfer) model, wherein they construct roads/highways for the government (NHAI) and collect tolls for a specified period (concession period) - which is the consideration they get for constructing roads.
As far as the InvIT is concerned, they purchase the road assets from the sponsor of the InvIT (IRB Infrastructure Developers) and collect tolls from the assets. The operation and maintenance of the road assets is taken up by the sponsor, for which they are paid a separate consideration (project management fees).
InvITs are required to distribute 90% of the NDCF (net distributable cash-flows) on a half-yearly basis. Therefore, I think it is appropriate to assess the financial performance using NDCF or a variant of NDCF as a metric rather than EBITDA, since amortisation/depreciation of the assets (non-cash item) forms a major chunk of the expenses.
As regards IRB-InvIT, the average concession period of the assets as at 31-March-2020 was ~16 years. The trust had distributed Rs. 32.80 per unit till 31-March-2020 (i.e., over a period of 3 years - average distribution per year ~Rs.11 per unit). Considering the issue price of Rs.100 and the remaining concession period, I would say that the trust has managed to give a good RoI, till now.
The fair value of a unit based on the valuation report as at March, 2020 was Rs. 87.64. Based on this value, I can say that the unit is trading at a pretty steep discount (CMP ~Rs.38). Since the valuation is based on DCF model using ~12.5% as the discounting rate, I think that the valuation is on the conservative side.
Other metrics like Debt-Equity Ratio and Unitholding Pattern also seem decent. The trust’s Debt-Equity Ratio was 0.27 to 1 as at 30-June-2020. With regard to the unitholding pattern, the sponsors held ~19% and the corresponding figures for FPIs and Mutual Funds were ~36% and ~10% respectively, as at 30-June-2020.
(Since I am invested in the trust, I might be having too much of a confirmation bias)
References:
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should i buy the investment from the fund house itself directly or from the secondary market ?
The units are traded on the secondary market. Moreover, the units can only be purchased in lots.
For Embassy REIT - The lot size is 200 ;
For Indigrid InvIT - The lot size is 1,701 ;
For IRB InvIT - The lot size is 2,500 ;
For Mindspace REIT - The lot size is 200.
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Awesome. This is exactly what I was looking for. Very much appreciated.
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so , which is better ? fund house or secondary market
The units of an InvIT/REIT can be purchased only from the secondary market or subscribed to, in an IPO.
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Hi @ShubhS9 , All
Can you please advise where can I find the updated list of Publicly traded REITs and InvITs ?
Over and above the ones mentioned in this thread i believe Brookfield is a REIT that is list.
Not sure of any other InvITs.
Also, what is the best source to check their dividend payout history ?
There are only 3 REITs in India. Embassy, Mindspace & Brookfield. Brookfield is too new to give any dividends but below is the dividend history for the remaining 2. Keep in mind that these are POST taxes…
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Thanks @AJ007 ,
Do you have the details for InvITs as well ?
Also is the above spreadsheet available publicly ?
There are three InvIT’s listed on the exchanges. Trading symbols are as below;
IRBINVIT
INDIGRID
PGINVIT
You can check the dividend details on the Fundamentals section on Kite 
if they are allowed to get colleterial then more money will come here , anything possible in near future to be a part of colleterial list tis reit and invit @ShubhS9
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