India’s REITs and InvITs surpass traditional indices in giving returns in 2025

Mumbai, Feb 5 (SocialNews.XYZ) Listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in 2025 significantly outperformed traditional benchmarks, delivering a strong 19.55 per cent return on an equal weight basis, a report showed on Thursday.

This was well ahead of the Nifty50 TRI (total returns index) at 11.42 per cent and the G Sec Index at 6.81 per cent, according to an ICRA Analytics report.

Data sourced from InfRE360 indicates that public trusts have emerged as one of the most resilient and rewarding asset classes during the year.

According to the report, REITs led the segment with an exceptional 29.68 per cent return, supported by robust leasing and stable yields, while Power InvITs posted a healthy 20.22 per cent.

Road InvITs trailed at 6.55 per cent, reflecting asset specific and sectoral constraints. December quarter distributions are yet to be accounted for, which will further lift overall returns, said the report.

“REITs nearly doubled their returns, rising from 16.81 per cent in 2024 to 29.68 per cent in 2025, reflecting sustained leasing momentum and consistent yield profiles,” said Madhubani Sengupta, Head- Knowledge Services, ICRA Analytics.

Power InvITs advanced from 9.43 per cent to 20.22 per cent, reflecting operational resilience and market conditions, whereas Road InvITs dipped from 9.49 per cent to 6.55 per cent, highlighting mixed performance trends across infrastructure linked assets and the impact of new listings, Sengupta added.

According to the report, the interest rate environment in 2025 tilted investor preference towards equity linked and yield oriented instruments, which weighed G‐Sec performance.

In contrast, trusts continued to attract strong interest, supported by steady cash flows, competitive yields, and growing demand for infrastructure and real estate backed investment options.

Performance figures for REITs, InvITs, and the broader trust category are based on an equal weight calculation across all listed entities rather than market cap weighting, said the report.

Source: IANS

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