NAREIT’s Research function encompasses three types of activity:

• NAREIT’s staff of PhD economists conduct internal analysis on widely varying issues of interest to REIT and real estate investors, investment managers, plan sponsors, investment consultants, journalists, and others.
• NAREIT sponsors research by respected third-party researchers including Morningstar, Wilshire Associates, and independent academic economists.
• NAREIT keeps abreast of research conducted independently by independent academics and industry research organizations.

Among the questions addressed by NAREIT’s recent internal research are:

• Do REITs provide exposure to the investment returns of the real estate asset class, or to the equity asset class?
• Do REIT investments protect investors against inflation?
• How do REIT general & administrative expenses compare with other ways of investing in real estate?
• Do REIT executive compensation structures align the interests of REIT executives with those of investors?
• Has REIT volatility declined significantly since the liquidity crisis of 2008-2009? How volatile are REITs?
• Have correlations between REITs and other assets have declined significantly since the liquidity crisis? How high are REIT-stock correlations?
• How do REIT returns compare with returns of private equity real estate funds?
• How do listed REIT investments work with unlisted real estate investments in diversified real estate portfolios?
• How liquid is the listed REIT market?
• What are the reasons for outperformance by listed REITs relative to private real estate investments?

NAREIT’s sponsored research agenda has addressed several complex issues, including:

• What is the role of REITs in Target-Date retirement investment portfolios?
• How are optimal allocations to REITs affected by bad-tail events such as the liquidity crisis?
• What is the role of U.S. and non-U.S. REITs in global mixed-asset portfolios?
• What role do REITs play in Liability-Driven Investment (LDI) portfolios?

NAREIT gathers independent research on all of these topics and others, including:

• The effects of liquidity, transparency, and governance on risk-adjusted investment returns
• The importance of the REIT distribution requirement in maintaining capital market discipline
• The role of access to capital markets (public equity, public debt, private equity, and private debt) in strengthening REIT performance