India REITs Bigger and fuller

Research evidence excerpt

India REITs Bigger and fuller

9 June 2026

Equities

REITs India REITs

Bigger and fuller India

◆ GAV, NAV of REITs have seen significant expansion over the Puneet Gulati*, CFA

past two quarters which should increase investor comfort Senior Analyst, India Energy, Property & Infra

HSBC Securities and Capital Markets (India) Private Limited

puneetgulati@hsbc.co.in

◆ Indian office market has shown resilience with strong leasing +91 82 9189 7591

and low occupancies, REITs are outperforming market Sambhav Kela*

Analyst, India Real Estate & Power

◆ Maintain Buy on EOP IN and Hold on BIRET IN, with sambhav.kela@hsbc.co.in

unchanged TPs of INR500 and INR365, respectively +91 22 40891464

REITs are witnessing GAV and NAV expansion which should feed into a virtuous * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

cycle of expansion. In our report “Age of empires” (1 Dec 2025), we highlighted that

REITs are set to witness NAV expansions driven by adjustments in independent

valuers’ assumptions. Over the last six months, valuers across REITs have reduced

WACC assumptions as well as cap rates, which along with acquisitions and increasing

rentals have led to GAV expansion of 10-51% along with NAV expansion of c9-10%

across REITs (see page 5). This expansion will now (1) increase the REITs ability to

borrow more without inflating loan-to-value ratios, (2) make future acquisitions more

accretive, (3) and boost investor confidence with a higher margin of safety. All these

should further boost expansion capabilities of the REITs.

Office leasing holding up against worries of AI-led job cuts. Despite worries on

AI-led job cuts impacting the demand for office spaces, the Indian office market has