Listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in 2025 showed a strong performance, surpassing traditional benchmarks. According to an ICRA Analytics report, these trusts delivered a remarkable 19.55% return on an equal weight basis, outshining the Nifty50 TRI and the G Sec Index.
The report highlighted that public trusts have emerged as resilient and rewarding asset classes during the year. REITs led the segment with a 29.68% return, driven by robust leasing and stable yields. Power InvITs also performed well, posting a healthy 20.22% return, while Road InvITs lagged behind at 6.55%.
Madhubani Sengupta, Head of Knowledge Services at ICRA Analytics, noted the significant increase in returns for REITs and Power InvITs from the previous year. REITs saw their returns almost double, rising from 16.81% in 2024 to 29.68% in 2025, while Power InvITs increased from 9.43% to 20.22%. However, Road InvITs experienced a decline from 9.49% to 6.55%.
The report also mentioned that in 2025, the interest rate environment favored equity-linked and yield-oriented instruments, impacting the performance of G-Sec. On the other hand, trusts continued to attract strong interest due to steady cash flows, competitive yields, and increasing demand for infrastructure and real estate investment options.
