There are mutiple factors which work in valuation of REIT, which include Net asset value, occupancy, lease rental, micro market real estate prospects of the REIT, distribution and expected grwoth prospects. Currently, Mindspace is offering maximum distribution for the investors in tax efficient way. While gross yield is lower than Embassy REIT, the post tax yield for each individual would depend on their marginal interest tax. For highest tax bracket investors, due to tax efficient pattern, Mindspace REIT may offer maximum return and hence may be willing to invest at higher price. That could be one reason for difference in discount/premium to NAV market. There could be mutiple other facrtors like expected distribution acceretive new assets, financing high cost debt with lower cost debt, expected major lease announcements or reduction in occupancy rates which would vary over the periods. So very difficult to put one or two specific reasons for differences in valuation. I know that my answer is not specific, but this is best of my understanding.
Thanks for seeking my view. Wish you happy investing
Discl: I have investment in Embassy REIT, hence my view may be biased.
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