U.S. equity REITs delivered higher returns for pension funds than unlisted real estate over a 20-year period, according to new research released today. REITs also benefited from more than 50 percent lower management fees.
The annual analysis, conducted for trade association Nareit by research firm CEM Benchmarking, looked at the allocation and performance of assets in 200 public and private pension funds, representing nearly $3.8 trillion in combined assets under management. The study provides a comprehensive review of investment allocations and realized investment performance across 12 asset groups from 1998 to 2017.
Key takeaways from the study, titled “Asset Allocation and Fund Performance of Defined Benefit Pension Funds in the United States,” include:
REITs continue to outperform other real estate assets: REITs have delivered an average annual net return of 10.89 percent over the 20-year period examined in the study. In comparison
