Portfolio Greenness and the Financial Performance of REITs

Last updated: 10-31-2019

This report from Maastricht University discusses the effects of the sustainability of commercial properties on their operating and stock performance. Investors considering incorporating the environmental performance of a building into investment decisions may benefit from this report. Using a sample of U.S. Real Estate Investment Trusts (REITs), the report estimates that an REIT's sustainability is positively related to return on assets, return on equity, and the ration of funds from operations to total revenue.