REITs outperform private equity in head-to-head comparison
Research comparing the performance of private equity real estate funds and REITs found that REITs tended to outperform, and the disparity was magnified when measuring risk-adjusted returns, write Thomas Arnold, David Ling and Andy Naranjo. The research, which was sponsored by Nareit, showed that "for funds that came to market between 2000 and 2014, listed REITs bettered the performance of closed-end private equity real estate funds on a risk-adjusted basis in 7 out of 10 head-to-head matchups."