As pension, endowment, foundation, and sovereign fund investors evaluate the benefits that exposure to commercial real estate bring to investment portfolios, they should know that stock exchange-listed REITs and real estate securities offer meaningful advantages as a way of obtaining that exposure.

Pension Funds and Real Estate

Nareit has created an educational tool for pension fund trustees to learn more about the role of real estate in their portfolio. Learn more at

Pension Plan Changes in Real Estate Allocations

The 2022 Pensions & Investments annual survey of pension plans found that REIT assets in the largest 200 U.S. retirement plans grew 22% to $34.2 billion during 2021 and are starting to play catch up with those plans’ private real estate portfolios that grew just 13.4% over the same time period. Over a five-year period, REITs also outpaced private real estate with assets up 47.4% compared to private real estate’s 40.5% increase.

There are a number of good reasons for defined benefit (DB) pension plans, endowments and foundations as well as other investors to consider using REITs in their real estate strategies:

If you would like to send a question directly to the Nareit Investor Outreach team, please email us.

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