Evidence for the Atlas Approach
Private Real Estate
Alternative Investment Reality Check Series – Private Real Estate Investing: Not Worth the Trouble (Frier – February 2025)
In this video, our CIO Ken Frier breaks down why private real estate often underperforms and why REITs offer a simpler, more effective way to invest in property.
Real Estate: Index and Selected Benchmark Statistics (Cambridge Associates – December 2023)
Private real estate outcomes have been well behind the performance of REITS.
CEM Study Shows REITs Outperform Private Real Estate by Nearly 2.3% in DB Plans (Nareit – December 2023)
Another study showing that private real estate returns have been below the returns of REITS.
Demystifying Illiquid Assets: Expected Returns for Private Real Estate (Ilmanen, Chandra, McQuinn – October 2019)
“Oddly enough, in North America, REITs have outperformed [private real estate] by 1-3% since inception, suggesting an inverse illiquidity premium.”
Private Equity Real Estate Fund Performance: A Comparison to REITs and Open-end Core Funds (Arnold, Ling, Naranjo – June 2021)
“PERE funds have underfperformed listed REITs, even before adjusting for risk, leverage, illiquity, and the uncertain investment timing associated with unfunded capital commitments.”
Asset Allocation and Fund Performance of Defined Benefit Pension Funds in the United States, 1998-2022 (Behmaram, Flynn, Bragt – November 2024)
REITs consistently outperform private real estate investments for U.S. pension funds. Despite delivering higher returns and similar volatility, REITs remained underused compared to unlisted real estate.