Featured Research

  • NCREIF-NAREIT Quarterly Executive Summary New!
         Both public and private real estate markets continued to improve in the fourth quarter, in contrast to a slight decline in the S&P 500. All major property sectors posted gains. Equity REITs continued to raise equity capital, with a net inflow of $8.8 billion following a robust $15.1 billion in the third quarter. Total equity and debt capital raised for the year as a whole set a new record of $73.3 billion.

  • Wilshire Research - The Role of REITs and Listed Real Estate Equities in Target Date Fund Asset Allocations New research by Wilshire® shows how investors and investment managers can strengthen retirement portfolios and, in particular, target date funds (TDFs). TDFs are popular investment products designed to simplify 401(k) or IRA portfolio planning for millions of Americans now responsible for their own retirement planning. Wilshire found that a TDF portfolio including U.S. REITs would have produced an ending portfolio value nearly 10 percent higher than a portfolio without REITs over a 35-year period from 1976 through 2010, while also reducing risk. "It's time for target date funds to take a closer look at REITs," said Cleo C. Chang, Managing Director and Head of Investment Research for Wilshire Funds Management, who conducted the research.

  • Morningstar Analysis - Allocating Your Investments for a Boom and Bust World: The Role of Real Estate in Weathering the Storm
    Markets crash more often and fall harder than traditional models of investment returns would predict. From January 1926 to April 2009, the S&P 500 Index suffered 10 monthly losses greater than 15.74 percent, or eight times more often than an investor would expect based on the "normal" distribution of returns assumed by many investment strategists and their models. NAREIT commissioned Morningstar to conduct this analysis of nearly 20 years of data for nine global asset classes, including stocks, bonds, real estate and cash. The analysis covered how these asset classes performed and used the latest portfolio optimization techniques to produce optimal portfolios assuming both normal market conditions and events such as the financial crisis of 2008 - 2009.

  • Morningstar Research - Commercial Real Estate Investment: REITs and Private Equity Real Estate Funds
    Morningstar's commercial real estate investment report evaluated the performance of commercial real estate investments made through publicly traded equity REITs and private equity real estate funds. Morningstar found that publicly traded equity REITs have outperformed private equity core, value-added, and opportunistic funds consistently over the long term, experienced stronger bull markets, recovered faster from downturns, and had lower fees and expenses on average compared with private real estate funds.

  • URDANG Recommends Investors Consider Holding Both REITs and Private Real Estate
    Institutional real estate investors should consider including both real estate investment trusts (REITS) and private real estate in their portfolios as both provide distinct advantages, according to a report from URDANG, the real estate investment manager and part of BNY Mellon Asset Management.

  • REITs and Private Equity Real Estate Funds: The Blended Portfolio Advantage
    A new NAREIT analysis of nearly 22 years of data shows the diversification achieved by blending public REITs with private equity real estate produces superior portfolio returns with lower risk, delivering significantly increased Sharpe ratios (risk adjusted returns).

  • REITs: Real Estate With a Return Premium
    A NAREIT analysis of the performance of publicly traded equity REITs and private equity core, value-added and opportunistic funds over the last full real estate cycle shows REITs outperformed private equity real estate funds over the entire cycle, as well as over the bull market portion of the cycle when value-added and opportunistic funds’ higher leverage would have been expected to deliver superior returns.

  • The Truth About Real Estate Allocations
    This analysis from investment management firm Cohen & Steers reviews the performance of publicly traded REITs and core, value-added and opportunistic private equity real estate funds over various periods on a net-of-expenses basis. The paper explores the possible reasons for REITs' outperformance, based on the comparative business models of REITs and private equity real estate funds.


Additional Research and Resources on Public and Private Real Estate

Academic Studies
  • "Privately Versus Publicly Held Asset Investment Performance," by Timothy J. Riddiough, Mark Moriarty & P.J. Yeatman. The paper is published in Real Estate Economics, Vol. 33, No. 1, pages 121-146, March 2005, and is available here for purchase.

  • "Public Versus Private Real Estate Equities: A More Refined, Long-Term Comparison," by Joseph L. Pagliari, Kevin A. Scherer & Richard T. Monopoli. The paper is published in Real Estate Economics, Vol. 33, No. 1, pages 147-187, March 2005, and is available here for purchase.

  • "A Successive Effort on Performance Comparison Between Public and Private Real Estate Equity Investment," by Jengbin Patrick Tsai. The paper is available available here.

From the Media: Articles of Note




IN DATA & RESEARCH

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Europe Real Estate Debt Funds Aggressively Pursuing New Capital, Study Says

5/17/2013
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Fitch Ratings Says CMBS Delinquencies Lowest in Five Years

5/16/2013
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Property Values Hovering Around Market Peaks

5/13/2013
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Book Offers ‘Road Map’ to REIT Investing

5/10/2013
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Macerich Added to S&P 500 Index

5/8/2013
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Ferguson: Canadian Real Estate Going Strong

5/3/2013
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Brookfied-Office-Properties-Focused-on-Reducing-Carbon-Footprint

1/1/0001
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Reimbursements, Care Level Dominant Themes for Health Care REITs

11/20/2012
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Leader in the Light and GRESB Advance Sustainability in Commercial Real Estate

5/3/2013
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Macerich Added to S&P 500 Index

5/8/2013
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Book Offers ‘Road Map’ to REIT Investing

5/10/2013
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REITs Outperform Broader Market in April

5/2/2013

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