Study Finds that REITs are a Must-Have for Investors

WASHINGTON, DC-Relying on the research capabilities of asset allocation advisory firm Ibbotson Associates, the National Association of Real Estate Investment Trusts has concluded that, as has long been suspected among real estate insiders, investing in REITs enhances asset portfolios–for both individuals and corporations. “Ibbotson found that REITs and direct real estate have similar, though not identical, long-term investment characteristics and create more efficient portfolios when combined as complementary investments,” explains Steven A. Wechsler, NAREIT president and CEO.

Examining a 15-year period ending in 2001, the study found that projected annual returns from asset holdings that included REITs and real estate investments outweighed portfolios with no real estate holdings by as much as .27%. “Real estate should be viewed as a core asset,” NAREIT senior vice president for research and investor outreach Michael R. Grupe adds. “Pension plans and other institutions have recognized this fact for many years and have capitalized on direct real estate equity and REITs for dividends and diversification.”