Infrastructure Investment Trusts | Real Estate Investment Trusts |
InvITs comprise a portfolio of infrastructure assets such as highways and power transmission assets. | REITs comprise a portfolio of commercial real estates |
InvITs invest in infrastructure projects such as roads or highways, which take some time to generate steady cash flows | Real Estate Investment Trusts (REITs) are an investment vehicle that owns and manages investment grade and income-producing real estate properties such as offices, malls, industrial parks, warehouses, hospitality and healthcare centres. |
InvITs can be publicy listed, private listed or private unlisted | REITs must be publicly listed. |
InvITs’ cash flows are less certain as they are dependent on multiple factors, including the capacity utilisation of the underlying assets and scalability of tariffs. | REITs provide stable income and yield as 80 per cent of REIT assets are income-generating assets with long-term rental contracts. |
InvITs comprise concessions where the projects are returned to the authority or rebid post the concession period. Here growth depends on the successful acquisition of concession assets through a bidding process. | REITs own the property leased out and their underlying assets see growth in value over time and have high terminal value. REITs have greater visibility of growth, which can be achieved by redeveloping existing assets, new construction, and acquiring completed leased assets. |
InvITs have a bigger trading lot size and thus somewhat poor liquidity. | REITs are more accessible to small investors and have higher liquidity due to lower unit prices and trading lots. |
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