The Financial Rewards of Sustainability: A Global Performance Study of Real Estate Investment Trusts

22 Pages Posted: 18 Jun 2015

See all articles by Franz Fuerst

Franz Fuerst

University of Cambridge - Department of Land Economy; University of Melbourne; City University of New York - Center for Urban Research

Date Written: June 16, 2015

Abstract

This study shows for the first time, that investing comprehensively in sustainability as measured by the GRESB rating) pays off for REITs by enhancing operational performance and lowering risk exposure and volatility. Analyzing a sample of REITs from North America, Asia and Europe for the 2011-14 time period, it also appears that there is a great deal of untapped potential, particularly in the REIT community, to improve the sustainability performance of corporate real-estate portfolios. For real estate assets to maintain their competitive positioning, it is critical that their owners invest in measures that improve their sustainability.

Keywords: Real estate, sustainability, REITs, performance ratings

JEL Classification: G10, G23, R33

Suggested Citation

Fuerst, Franz, The Financial Rewards of Sustainability: A Global Performance Study of Real Estate Investment Trusts (June 16, 2015). Available at SSRN: https://ssrn.com/abstract=2619434 or http://dx.doi.org/10.2139/ssrn.2619434

Franz Fuerst (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

HOME PAGE: http://www.landecon.cam.ac.uk/directory/dr-franz-fuerst

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

City University of New York - Center for Urban Research

CUNY The Graduate Center
New York, NY 10011
United States

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