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