Data Benchmarking Institutions: Boosting REIT Insights
NEW DELHI: The Indian REITs Association (IRA) has introduced a groundbreaking initiative, the Data Benchmarking Institutions (DBIs), aimed at enhancing transparency and accessibility within the Indian Real Estate Investment Trust (REIT) sector. Announced on Wednesday, this significant development is set to provide investors with comprehensive and standardized information about REITs.
In a statement, the IRA emphasized that the Data Benchmarking Institutions will serve as a central repository for standardized, comparable data, fostering greater market efficiency and transparency in India’s burgeoning REIT sector. This move is expected to strengthen the information database and support investors in making informed decisions as the REIT market evolves.
Under the guidance of the Securities and Exchange Board of India (SEBI), three prominent financial services firms—CareEdge, CAMS, and KFintech—have developed dedicated platforms for this initiative. These platforms will house key REIT-related data, offering in-depth performance metrics, operational details, valuation standards, and disclosures.
“The IRA highlighted that the DBIs will provide investors with in-depth insights into REIT performance and operational metrics, facilitating informed, data-driven investment choices. This initiative aims to provide a clearer view of the Indian REIT landscape, assisting investors in evaluating and comparing various REITs effectively.
The journey of REITs in India began with the introduction of regulatory guidelines in 2014, culminating in the public launch of REITs with the listing of Embassy REIT in 2019. This was followed by the listings of Mindspace Business Parks REIT in 2020 and Brookfield India Real Estate Trust in 2021. Most recently, in May 2023, India saw the listing of its first retail REIT, Nexus Select Trust.
Indian REITs are mandated to invest at least 80% of their portfolio in income-generating properties and distribute a minimum of 90% of net distributable cash flows to investors on a semi-annual basis.
For more information on how this initiative can impact your investments, visit the platforms launched by CareEdge, CAMS, and KFintech.
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