BSE Index Services, a wholly owned subsidiary of BSE, has launched the BSE REITs Index, a new benchmark designed to measure the performance of listed Real Estate Investment Trusts (REITs) in India. The index has a base value of 1,000 with a first value date of September 19, 2022, and is reconstituted semi-annually in March and September. According to reports from CNBC TV18, the index follows a capped free-float adjusted market capitalisation weighting methodology and comprises six listed REITs drawn from the BSE REITs and InvITs universe, calculated in Indian Rupees. The index is designed to provide a measure of how listed REITs perform as a group, allowing investors to participate in income-generating real estate assets such as office and commercial properties through listed units, rather than directly owning physical property.
As of July 31, 2026, the index's Total Return Index (TRI) stood at 1,469.77, while the Price Return Index (PRI) was 1,159.66. The Total Return Index delivered impressive returns of 2.05% over one month, 5.76% over three months, 6.17% year-to-date, 18.54% over one year, and an annualised return of 18.17% over three years. The Price Return Index generated returns of 1.98% over one month, 4.60% over three months, 3.00% year-to-date, 11.66% over one year, and an annualised return of 11.20% over three years. The index recorded annualised volatility of 11.49% over one year and 9.32% over three years for the Total Return Index, with corresponding risk-adjusted returns of 1.61 and 1.93 respectively. The Price Return Index recorded annualised volatility of 11.79% over one year and 9.56% over three years, with risk-adjusted returns of 0.99 and 1.16 respectively. Total returns include distributions such as dividends, while price returns measure changes in the value of the underlying securities without factoring in such distributions.
The index is led by Embassy Office Parks REIT, which accounts for 32.18% of the index weight, followed by Brookfield India Real Estate Trust at 23.44%, Nexus Select Trust at 21.20%, Mindspace Business Parks REIT at 11.57%, Bagmane Prime Office REIT at 6.53%, and Knowledge Realty Trust at 5.07%. Collectively, these six REITs constitute the entire index, with the sector-wise exposure currently at 100% to the Consumer Discretionary sector. The index is calculated in Indian Rupees (INR) and comprises six listed REITs drawn from the BSE REITs and InvITs universe, with the index also including InvITs in its broader universe, although the current constituents listed are REITs. The weights can change as market values and free-float factors change, while the index itself undergoes scheduled reconstitution every six months in March and September.
On the valuation front, the index has a price-to-earnings (P/E) ratio of 68.55, a price-to-book (P/B) ratio of 1.78, and a dividend yield of 5.75%, offering investors a high-income exposure to India's listed REIT market. The index is designed to provide comprehensive coverage of India's listed REIT market through its diversified constituent base and systematic reconstitution process. However, it is important to note that the index's performance does not represent the return an investor would necessarily earn by investing in any one REIT. Individual REITs can perform differently depending on factors such as occupancy, rental income, property valuations, interest rates and the quality and location of their assets. The index also has a relatively small number of constituents, with the six-member basket meaning that the performance of its larger constituents can have a significant impact on the overall index.
