Retirement Portfolio: 2 REITs for ‘Lifelong Dividends’!

  • Stock Market Analysis
  • Editors Pick

While curating a retirement portfolio, investors should also think of adding consistent dividend-paying companies to help them with cash flows. Although there are many high-quality companies out there that could make it to the list of any dividend portfolio, REITs (Real Estate Investment Trusts) are specifically picked for regular payouts.

In case you are attempting to make a lifelong dividend income stream, here are 2 REITs that you can have a look at.

Embassy Office Parks REIT

Embassy Office Parks REIT (NS: EMBA ) owns and operates a portfolio of 8 office parks and 4 city-centre office buildings, having a market capitalization of INR 32,216 crores. As of the last fiscal year, the company had an occupancy of 87% with weighted average lease expiry (WALE) of 7 years. 48% of its gross rentals come from Fortune 500 companies and 81% of the total occupiers are international companies.

The REIT posted a 16.8% YoY jump in revenue to INR 927.62 crores in Q3 FY23 but net income declined 21.6% YoY due to lower EBITDA to INR 163.21 crores. At the current price of INR 304.65, it is trading at a lucrative dividend yield of 6.4% which is almost matching the current inflation of 6.52%.

On the technical front, the REIT is trading at a good support level of INR 300, noticeably down from its all-time high of INR 512, marked in March 2020, making it an attractive level to be added to a long-term portfolio.

Mindspace Business Parks REIT

Mindspace Business Parks REIT (NS: MINS ) has a total leasable area of 31.8 msf, having a market capitalization of INR 20,155 crores. Its WALE is around 6.9 years among 57 premium buildings across 10 office assets. The REIT has robust financials and currently trading at a TTM P/E ratio of 45.92 and a dividend yield of 5.43%.

In Q3 FY23, its revenue surged 27.4% YoY to INR 564.9 crores while net income took a hit of 14.9% to INR 115.9 crores. One of the best things about this REIT is, it has maintained a very healthy payout ratio of 1.75 (average for the last 2 fiscal years).

This REIT was down 11.6% in the last month and it up 5.1% in March so far. The demand zone between INR 290 - INR 275 seems an ideal area to lap up this REIT.

Read More: 3 Hacks to Survive a Losing Streak!

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  • bhushan mohole @bhushan mohole
    very low yeild
    Like 0
  • sanjeev khetarpal @sanjeev khetarpal
    Is the div yield 6.4% or 5.43%? Both are mentioned in the article.
    Like 0
    • Nikhil Sharma @Nikhil Sharma
      article talks about two different REITs, and both of these have different yields.
      Like 0
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