- January 1, 2019: Vol. 13, Number 1

To read this full article you need to be subscribed to Institutional Real Estate Europe

On the REIT track: Are REITs set to become an increasingly important market for institutional investors?

by Jon Stewart and Nic Baddeley

In a world of low yields and patchy economic growth, it is perhaps little surprise that real estate is enjoying increasing prominence.

The sector’s combination of stable income backed by long-term leases at a generous yield spread to sovereign bonds has clear appeal to institutional investors. Real estate now occupies an increasingly important role in multi-asset portfolios as a source of diversification, income, and long-term capital growth along-side other alternative asset classes.

While the majority of investment flows tar-get direct property ownership through various structures, there is a compelling argument that REITs and their listed property company peers deserve greater prominence than current allocations suggest they actually hold. A Mercer study, European Asset Allocation Survey 2018, suggests that property in general accounts for around 3 percent of institutional defined benefit (DB) portfolios in Europe. Within this, the commitment to listed pr

Forgot your username or password?

We use cookies and other tracking technologies to personalize your user experience on our site and perform site analytics. By clicking on “I accept”, you consent to our Privacy Policy.