Any one invested in reit?

83°
Deal Lieutenant
Bk100

in india there are 3 listed reit is there. Any one invested in them? 

out of 3 which one you prefer and why? 

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Deal Subedar Deal Subedar
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You can include the 2 InvITs also. It’s just infrastructure instead of real estate. 

Deal Lieutenant Deal Lieutenant
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Ramta_Jogi wrote:

You can include the 2 InvITs also. It’s just infrastructure instead of real estate. 

but invits are more risky as  we don’t know when indian courts interfere and cancel or modify contracts. 

Deal Subedar Deal Subedar
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Bk100 wrote:

but invits are more risky as  we don’t know when indian courts interfere and cancel or modify contracts. 

I find ReiTs riskier. You never know when the company winds up its business or declares bankruptcy!

Deal Newbie Deal Newbie
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Been reading about Mindspace. Feel all three are still under-researched. Have to read the other two.

I am trying to create a framework as to how to find which is better among the three. Still Work in Progress

Deal Lieutenant Deal Lieutenant
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nihaln wrote:

Been reading about Mindspace. Feel all three are still under-researched. Have to read the other two.

I am trying to create a framework as to how to find which is better among the three. Still Work in Progress

one thing is all the three quoted bellow nav – 3 to 5 % . 

in other words we are buying real estate portfolio at discount. 

i made small token purchases of Brookfield reit and Mindspace yesterday. Want to increase my investment in reit in coming days. 

will split investment equally in 3 reits as not able to understand which is undervalued among three. 

Deal Newbie Deal Newbie
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Bk100 wrote:

one thing is all the three quoted bellow nav – 3 to 5 % . 

in other words we are buying real estate portfolio at discount. 

i made small token purchases of Brookfield reit and Mindspace yesterday. Want to increase my investment in reit in coming days. 

will split investment equally in 3 reits as not able to understand which is undervalued among three. 

Same here, I have token purchases in all three, split equally. as you said, as it’s available at discount to NAV i feel it was under researched. dividends they are giving every quater. they are adding new capacity under them every year which gives more dividends plus higher NAV.


Deal Lieutenant Deal Lieutenant
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nihaln wrote:

Same here, I have token purchases in all three, split equally. as you said, as it’s available at discount to NAV i feel it was under researched. dividends they are giving every quater. they are adding new capacity under them every year which gives more dividends plus higher NAV.


check powergrid invit – looks interesting. I Will make token purchase tomorrow. 

Deal Lieutenant Deal Lieutenant
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Ramta_Jogi wrote:

I find ReiTs riskier. You never know when the company winds up its business or declares bankruptcy!

have you invested in powergrid invit? Take a look – it looks interesting. 

Deal Newbie Deal Newbie
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Bk100 wrote:

check powergrid invit – looks interesting. I Will make token purchase tomorrow. 

Yeah will see, I saw their structure and didn’t understand it the first time, INVIT need to understand more before jumping, although dividend yield is better than REITs.

Deal Lieutenant Deal Lieutenant
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nihaln wrote:

Yeah will see, I saw their structure and didn’t understand it the first time, INVIT need to understand more before jumping, although dividend yield is better than REITs.

as per research report – powergrid invit had projects which have tenure of 35 years with fixed income yield. 

Deal Newbie Deal Newbie
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Bk100 wrote:

as per research report – powergrid invit had projects which have tenure of 35 years with fixed income yield. 

yeah. Research reports will be useful.  at least i can understand them better. Will update if i start taking new position in PowerGrid Invit, IRB Invit i have heard IRB as promoter is not so great. In REITs, i am fully deployed now. 

Deal Lieutenant Deal Lieutenant
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nihaln wrote:

yeah. Research reports will be useful.  at least i can understand them better. Will update if i start taking new position in PowerGrid Invit, IRB Invit i have heard IRB as promoter is not so great. In REITs, i am fully deployed now. 

today just made token  purchase in pgit.

In reit i deploy some fund every monday on sip basis. 

Deal Lieutenant Deal Lieutenant
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nihaln wrote:

Some content on Invits, initial reading says current yield which is close to 11%-15% is not sustainable. 
https://twitter.com/leading_nowhere/status/1393...
https://www.multipie.co/blog/ipo-updates/power-...

it is unrealistic to expect 11 to 15% for AAA rated assets. I will be happy at 8 % + returns for AAA govt backed assets. That too for long tenure . 

Deal Cadet Deal Cadet
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Bk100 wrote:

it is unrealistic to expect 11 to 15% for AAA rated assets. I will be happy at 8 % + returns for AAA govt backed assets. That too for long tenure . 

AAA in Indian context is very misleading. 

Indian sovereign LTR is BBB-. There’s no such thing as AAA credit in India.


Deal Lieutenant Deal Lieutenant
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SS3321 wrote:

AAA in Indian context is very misleading. 

Indian sovereign LTR is BBB-. There’s no such thing as AAA credit in India.


i don’t understand  what these country ratings are.😂😜

world highest debt is accumulated by usa and these rating agencies rate it as AAA. 😂

china which is biggest financer of USA debt is rated A. 😂

Deal Cadet Deal Cadet
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Bk100 wrote:

i don’t understand  what these country ratings are.😂😜

world highest debt is accumulated by usa and these rating agencies rate it as AAA. 😂

china which is biggest financer of USA debt is rated A. 😂

By this logic, Reliance industries should not get credit from Yes bank?  Or if it does, yes bank should be better rated?

Credit ratings are based on coverage ratios and not on absolute debt levels. US has the highest GDP in the world (which makes it able to capable of servicing a higher absolute level of debt)


Deal Lieutenant Deal Lieutenant
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SS3321 wrote:

By this logic, Reliance industries should not get credit from Yes bank?  Or if it does, yes bank should be better rated?

Credit ratings are based on coverage ratios and not on absolute debt levels. US has the highest GDP in the world (which makes it able to capable of servicing a higher absolute level of debt)


USA is bankrupt country. China is rich country without debt and have surplus assets. If you think China A is justified nothing left yo say. 

western rating agencies method itself questionable – it proven again and again be it enron crisis or Lehman crisis. 

Deal Cadet Deal Cadet
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Bk100 wrote:

USA is bankrupt country. China is rich country without debt and have surplus assets. If you think China A is justified nothing left yo say. 

western rating agencies method itself questionable – it proven again and again be it enron crisis or Lehman crisis. 

Guess I’m inclined towards “nothing left to say” category. You’re right rating agencies came under radar particularly during 2008 as they were late in responding to the situation. But be aware that hindsight is 20/20. And a lot of exposure through derivatives and contingent assets is off-balance sheet, so visibility into Lehman’s true exposure to market risk was very limited even for a credit rating agency.

i am not defending rating agencies, just sharing what I know having worked few years at S&P and now in a covenant risk advisory role.


Deal Lieutenant Deal Lieutenant
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SS3321 wrote:

Guess I’m inclined towards “nothing left to say” category. You’re right rating agencies came under radar particularly during 2008 as they were late in responding to the situation. But be aware that hindsight is 20/20. And a lot of exposure through derivatives and contingent assets is off-balance sheet, so visibility into Lehman’s true exposure to market risk was very limited even for a credit rating agency.

i am not defending rating agencies, just sharing what I know having worked few years at S&P and now in a covenant risk advisory role.


i don’t trust these rating at all – my trust is zero when rating agencies say china is A ( which ironically just above BBB which these agencies give to India) and USA is AAA 

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