• Income structure: Unlike fixed deposits that only yield interest without principal growth, REITs generate two income streams through regular cash distributions and potential capital appreciation.
• Tax efficiency: Fixed deposit interest is fully taxable under an investor's applicable income tax slab, whereas dividend distributions from REITs are non-taxable.
• Cash flow stability: Revenue predictability is supported by 9- to 10-year property leases signed with large multinational corporations, such as Google, Amazon, IBM, and Bank of America.
• Foreign institutional participation: Foreign Portfolio Investors (FPIs) allocate substantial capital to Indian REITs due to their familiarity with the vehicle, which has operated in the US for 60 years.