REITs outperform other asset classes
Globally, equity REITs outperform private real estate, stocks and bonds over the long-term.
Source: Nareit
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REITs outpace international stocks and bonds
REITs easily outshine rival asset classes when we look at compound annual growth rates.
Source: Nareit
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European listed real estate beats European bonds and equities
Turning to Europe, REIT and corporate real estate equities returned an annualised 7.4% over 20 years, far higher than European equities and bonds.
Source: EPRA
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European listed real estate yields
The five-year average yield of listed real estate in the FTSE EPRA NAREIT Developed Europe REITs Index is 4.7% (as of June 30, 2021), easily surpassing the competition.
Source: EPRA
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South African REITs add proven value
The South African REIT Association (SAREIT) make the case for a significant increase in REIT allocations within multi-asset investor portfolios.
The paper concludes that “…by incorporating REITs into a diversified portfolio, investors can potentially enhance risk-adjusted returns, hedge against inflation and gain exposure to the commercial real estate asset class.”
Source: SAREIT
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