Global Securitized Real Estate Benchmarks and Performance

37 Pages Posted: 21 Nov 2008 Last revised: 25 Sep 2009

See all articles by Camilo Serrano

Camilo Serrano

IAZI AG - CIFI SA

Martin Hoesli

University of Geneva - Geneva School of Economics and Management (GSEM); Swiss Finance Institute; University of Aberdeen - Business School

Date Written: November 4, 2008

Abstract

Choosing an appropriate benchmark is not unproblematic for academics or practitioners. Index construction methodologies vary from index to index as tradeoffs are made between the breadth of market coverage and the investability of the securities in the index. This paper examines the nuances between the most commonly used global securitized real estate benchmarks. A comparison of their construction methodologies, returns, and risk is performed, and the correlations between the various benchmarks are assessed. The composition of global securitized real estate markets is also analyzed. We conclude that the GPR General Property Share Index and the S&P/Citigroup World Property Index are more appropriate to examine the performance of the market as a whole, while the GPR 250 Property Share Index and the FTSE EPRA/NAREIT Global Real Estate Index are better suited to evaluate portfolio performance.

Keywords: Global Securitized Real Estate, REITs, Benchmark, Index Characteristics

JEL Classification: R33, G11

Suggested Citation

Serrano, Camilo and Hoesli, Martin Edward Ralph, Global Securitized Real Estate Benchmarks and Performance (November 4, 2008). Journal of Real Estate Portfolio Management, Vol. 15, No. 1, 2009, Swiss Finance Institute Research Paper No. 08-39, Available at SSRN: https://ssrn.com/abstract=1304565

Camilo Serrano (Contact Author)

IAZI AG - CIFI SA ( email )

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Martin Edward Ralph Hoesli

University of Geneva - Geneva School of Economics and Management (GSEM) ( email )

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Swiss Finance Institute

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University of Aberdeen - Business School ( email )

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