NSE Indices launches Nifty REITs & InvITs 90:10 Index

NSE Indices, a subsidiary of the National Stock Exchange (NSE), on Friday launched the Nifty REITs & InvITs 90:10 Index. It is a new thematic index designed to track the performance of all publicly listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

The index is expected to serve as a benchmark for asset managers managing active funds focused on the listed REIT and InvIT space.

The index follows a periodic capped free-float market capitalisation methodology. Individual constituent weights are capped at 33%, while the aggregate weight of REITs is maintained at a minimum of 90%. The combined weight of the top three constituents is capped at 62%.

The Nifty REITs & InvITs 90:10 Index has a base date of 1 April 2021 and a base value of 1,000. It comprises 13 constituents, is calculated on an end-of-day basis and will be reconstituted and rebalanced quarterly in March, June, September and December.

The index has delivered a total return of 18.29% over one year, 12.72% CAGR over five years, and 13.07% CAGR since inception (1 April 2021). The index has a dividend yield of 5.11%.

The index is heavily tilted towards the realty sector, which accounts for 90.09% of the portfolio, followed by power (5.35%), services (3.69%), and construction (0.86%).

The top five constituents by weight are Embassy Office Parks REIT (29.11%), Brookfield India Real Estate Trust (17.73%), Nexus Select Trust (15.38%), Knowledge Realty Trust (14.41%), and Mindspace Business Parks REIT (13.46%). Together, these five constituents account for around 90% of the index weight.

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