David Sullivan

The recent Cornell University/Hodes Weill’s 2024 Allocations Monitor report found that in 2023, institutions were more active allocating capital to REITs, as investors looked to capitalize on discrepancies between public and private market valuations.

Norges Bank Investment Management’s real estate investment strategy combines 50% REITs and 50% private real estate investments to enhance diversification, access new and emerging property sectors, and optimize cost management.

An Australian superannuation fund identified critical gaps in both property types and geographies within its commercial real estate portfolio.

According to the 2023 Hodes Weill/Cornell Real Estate Allocations Monitor, institutions consider REITs to be a complement to private real estate in terms of filling allocation needs and addressing liquidity objectives.

The meetings included large foundations, endowments, consultants and investment managers.

Norges Bank Investment Management (NBIM) recently published a discussion note, “Drivers of Listed and Unlisted Real Estate Returns,” which analyzes the drivers of U.S. public and private real estate returns and evaluates real estate exposures in the context of a diversified investment portfolio.

REITs offer sector diversification by giving investors better access to property sectors that house the modern economy, such as cell towers, data centers, self-storage, health care, industrial, and logistics.