Risk and Performance of Internationally Listed Real Estate Returns

Abstract

This article studies the performances of publicly traded real estate companies (real estate investment trusts and listed property companies) from 14 countries covering North America, Europe, and Asia as proxied by FTSE EPRA/NAREIT Global Real Estate Indexes over the period from 2000 to 2015. We implement robust normalized risk-adjusted performance measures and compare nine performance indicators before, during, and after the global financial crisis (GFC). Our findings show that the GFC had a huge impact on the ranking of internationally listed real estate securities’ relative performance. The study also stresses the importance of applying various performance measures to get a full picture of internationally listed real estate returns.