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REITs outperform unlisted real estate investments
Research - OCTOBER 19, 2020

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REITs outperform unlisted real estate investments

by Released

Equity REITs outperformed unlisted real estate investments over a more than two-decade period, delivering higher returns for pension funds, according to newly released research, sponsored by Nareit and conducted annually by research firm CEM Benchmarking. REITs outperformed private real estate by nearly 2.7 percentage points per year on average and also provided better risk-adjusted returns.

This year, with access to a 21-year data set, the study looked at the allocation and performance of assets in more than 200 public and private sector pensions with nearly $3.9 trillion in combined assets under management.

John Worth, Nareit executive vice president of research and investor outreach, said, “CEM Benchmarking’s study shows the striking disparities between the returns of REITs and unlisted real estate. On average, REIT annual returns are nearly 2.7 percentage points higher than private real estate. REITs outperformed all styles of private real estate. This 21-year

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