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Nearly 200 mutual funds are dedicated to stock-exchange listed REITs.

Featured Research

  • CEM Benchmarking Defined Benefit Pension Fund Research 
    The study is based on data provided by more than 300 U.S. DB plans with $2.8 trillion of assets, and analyzes the period 1998 through 2011, during which fundamental changes occurred in DB allocations including heavy net inflows into alternative and real assets. CEM used its extensive databases to examine how allocation decisions paid off in terms of gross returns and realized returns net of fees charged by investment managers. Private equity had a higher gross return than listed REITs but charged fees nearly five times higher than REITs. As a result, listed equity REITs realized a net return of 11.31% vs 11.10% for private equity.
     
  • NCREIF-NAREIT Quarterly Executive Summary 
    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.
     
  • 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

  • “Securitization and the Supply Cycle: Evidence from the REIT Market,” by Frank Packer, Timothy Riddiough and Jimmy Shek. The paper is published in the Journal of Portfolio Management, Special Real Estate Issue, 2013, and is available here
     
  • "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 here.
     

From the Media: Articles of Note