The Nifty REITs & InvITs 90:10 Index has been launched by NSE Indices to serve as a benchmark for asset managers managing active funds focused on the listed REIT and InvIT space. According to reports from Business Standard, the index follows a periodic capped free-float market capitalisation methodology with individual constituent weights capped at 33%, while maintaining the aggregate weight of REITs at a minimum of 90%. The combined weight of the top three constituents is capped at 62%. The index has a base date of 1 April 2021 and a base value of 1,000, with the index comprising 13 constituents and calculated on an end-of-day basis with quarterly reconstitution and rebalancing in March, June, September and December.
The index has demonstrated strong performance with a total return of 18.29% over one year, 12.72% CAGR over five years, and 13.07% CAGR since inception starting from 1 April 2021. As reported by Business Standard, the index offers a dividend yield of 5.11% and has a base date of 1 April 2021 with a base value of 1,000. 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 maintains a heavy tilt towards the realty sector, which accounts for 90.09% of the portfolio, followed by power (5.35%), services (3.69%), and construction (0.86%). According to Business Standard, 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.
