Marketing Communication

15 Years of Listed Real Estate: The Case for REITs in a Diversified Real Estate Allocation

21 April 2026

A Milestone Worth Examining

In April 2026, the VanEck Global Real Estate UCITS ETF (TRET) marks 15 years since inception. Over that period, the GPR Global 100 Index has navigated the European sovereign debt crisis, the COVID-19 pandemic, and a 300+ basis point tightening cycle. Globally, listed real estate has grown to represent over $2.5 trillion in equity market capitalisation across more than 40 countries, with the Global Property Research General Index delivering a 10-year compound annual total return of 4.0% in USD.

Year	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
12-month performance (%)	32.06	1.12	32.26	14.96	-0.11	-3.79	0.23	22.58	-14.72	39.21	-21.13	9.05	9.44	-0.19

Source: VanEck, Morningstar. The chart displays cumulative performance in % in EUR NAV terms.

There is now sufficient evidence – from TRET’s track record, from institutional research, and from the practices of the world’s largest allocators – to assess the role listed real estate plays within a diversified portfolio. This article examines the structural case for REITs as a complement to private real estate and considers the outlook for the asset class.

Listed and Private Real Estate: Complementary Roles

Private vehicles offer direct ownership and appraisal-smoothed volatility; listed vehicles offer daily liquidity, transparency, and efficient rebalancing. The practical advantages of REITs – no cash drag, no lock-up, the ability to tactically tilt sector or geographic exposures – are well understood by institutional allocators. Norges Bank Investment Management runs a roughly 50:50 split between private and listed real estate¹, while Dutch institutions such as Bouwinvest and MN use REITs as completion portfolio mechanisms². Listed real estate also provides exposure to segments difficult to access via private vehicles. The ODCE Index has roughly 90% exposure in industrial, apartments, office, and retail³, whereas listed real estate has approximately 60% outside those categories.

Publicly Listed vs. Privately Held – A Look at Diversification

Private Real Estate, %
(ODCE)

REITs, %
(FTSE Nareit All Equity)

Source: NCREIF Open-end Diversified Core Equity ending market value as of Q1 via NCREIF, FTSE Nareit All Equity Index, equity mcap as of March 31, 2025 via Factset. Past performance is not indicative of future results.

Performance Evidence and Correlation

A CEM Benchmarking study covering over 200 US pension funds (1998–2022) found that REITs outperformed actively managed private real estate funds by more than 2 percentage points per annum on a net total return basis^4,5. This data reflects a specific historical period and US market conditions that may not be replicated elsewhere. The choice between listed and private vehicles involves a trade-off that each allocator must assess according to their own portfolio constraints.

Annual total return for real estate, 1998-2022, %
(Average annual total return net of fees)

Source: CEM Benchmarking 2024. Returns adjusted for reporting lags. Covers 200+ US pension plans, 1996–2022. Historical performance is not indicative of future results.

REITs exhibit higher short-term volatility than appraisal-based private vehicles. Over longer holding periods, however, correlation converges: from approximately 20% at a one-year horizon to above 50% over five years⁶. Both asset classes hold the same underlying property; the difference is in repricing speed, not fundamental exposure.

Correlation Between Listed and Private Real Estate Returns in the US

(Quarterly returns)

Source: GPR, MSCI, VanEck calculation. Listed real estate represented by the NAREIT index, unlisted real estate by the NCREIF Property Index. 1978–2025. Historical correlations may not persist in the future.

REITs in a Multi-Asset Context

The table below ranks annual returns across major US asset classes from 2009 to 2024. REITs finished in the top three in seven of these sixteen years and delivered positive returns in thirteen. In the deepest equity drawdown years (2018, 2022), REITs experienced comparable or smaller losses than broad equities while outperforming in subsequent recoveries – underscoring their diversification value in a multi-asset portfolio.

Annual Asset Class Returns (2009–2024)

Source: Morningstar as of 3/31/2026. Past performance is no guarantee of future results. Not intended as a recommendation to buy or sell any securities or digital assets referenced herein, or as any call to action. The views expressed are for illustrative purposes only, subject to change without notice, do not constitute investment advice or recommendations, and are those of the author(s) and not necessarily those of VanEck or its other employees. Please see important disclosures and index descriptions at the end of this presentation. Investments in digital assets are subject to significant risk and are not suitable for all investors. The value of digital assets is highly volatile, and you can lose your entire principal investment.

Outlook: A Normalising Environment

Occupancy rates across most REIT subsectors have recovered towards pre-pandemic levels⁷, with the notable exception of office – a segment that now represents a relatively small share of both the listed universe and TRET’s portfolio. Leverage ratios are well below levels seen during the 2008–2009 financial crisis⁸. The ECB has cut its deposit facility rate from 4.00% to 2.00% since June 2024, and the Bank of England has begun its own easing cycle⁹. EPRA’s 2026 Market Outlook characterises the coming period as a “year of normalisation” for European listed real estate, with inflation returning close to central bank targets¹¹. European listed property companies enter 2026 with strong balance sheets: 85% of debt at fixed rates, stable 1.0x debt-to-equity, and 5.3x EBITDA interest coverage¹². The sector raised a four-year record of EUR 28 billion in capital during 2025¹³.

European listed real estate trades at an average NAV discount of approximately 27%¹⁴, a level historically associated with above-average forward returns, with EPRA modelling projecting 7–10% annual returns for the Eurozone over five years¹⁵. More than 70% of US pension plans by assets now incorporate REITs into their real estate strategies¹⁶.

These projections carry significant risks, including geopolitical instability and trade policy uncertainty¹⁷. Stickier-than-expected inflation could lead to tighter monetary conditions. Investors should approach forward-looking estimates with appropriate caution.

TRET: 15 Years of Global Listed Real Estate Exposure

The VanEck Global Real Estate UCITS ETF (TRET) tracks the GPR Global 100 Index, capturing the 100 largest and most liquid listed real estate companies globally. The focus on large-cap holdings is deliberate: larger REITs tend to be better capitalised, with greater access to long-term fixed-rate financing. The index applies an ESG screening through GRESB’s Public Disclosure Score. The Fund does not have sustainable investment as its objective. TRET uses full physical replication, does not engage in securities lending, and has a TER of 0.25%.

Since inception in April 2011, TRET has delivered an annualized return of 7.02%[DP2.1][DP2.2][RH2.3] (NAV basis, EUR)¹⁰. Past performance is not a reliable indicator of future results.

TRET – Key Facts

Index	GPR Global 100 Index (GPR100GI)
Inception Date	14 April 2011
TER	0.25%
AUM	€416.3 million as of 20 Apr 2026
Holdings	100 global REITs
Regional Split	40 North America, 30 EMEA, 30 Asia Pacific
Replication	Fully physical (no securities lending)
Income	Quarterly distributions
ISIN	NL0009690239

The Case, 15 Years On

Fifteen years of live data reinforces the structural case: listed real estate has delivered returns comparable to private vehicles, provides access to growth segments private benchmarks underweight, and offers the liquidity needed for active portfolio management. With a normalising macro backdrop, improving fundamentals, and attractive valuations, the asset class enters 2026 on a constructive footing. For institutional allocators, TRET provides a low-cost, globally diversified vehicle with a 15-year track record. Investors should consult the fund’s prospectus and Key Information Document before making any investment decision.

Main Risk Factors

Foreign currency risk: as the fund invests in assets denominated in currencies other than the base currency (EUR), currency movements may negatively affect the value of the investment. Equity market risk: the value of equity securities may fluctuate in response to the activities of individual companies and general market and economic conditions. Industry or sector concentration risk: the fund’s investments are concentrated in the real estate sector, making it more susceptible to adverse developments in that sector. Interest rate risk: changes in interest rates may negatively affect the value of real estate securities. Please refer to the KID and the Prospectus for other important information before investing.

¹ Norges Bank Investment Management, Annual Report 2024. Top1000funds.com, “NBIM transparently explains half year results”, August 2024. Real estate portfolio split roughly 50:50 between unlisted and listed.

² Nareit, “Dutch Pension Portfolios Make Strategic, Long-Term Allocations to REITs”, July 2025. Nareit, “Institutional Investors Leverage REITs for Diversification and Growth”, December 2025.

³ NCREIF, ODCE Index ending market value. FTSE Nareit All Equity Index, equity market capitalisation as of March 31, 2025 via Factset.

⁴ CEM Benchmarking Inc., “Asset Allocation and Fund Performance of Defined Benefit Pension Funds in the United States, 1998–2022”, commissioned by Nareit, December 2024.

⁵ CEM Benchmarking 2024, op. cit. REITs averaged 9.74% net annual return vs. 7.66% for private real estate. Returns adjusted for reporting lags.

⁶ Global Property Research (GPR), MSCI. NAREIT index vs. NCREIF Property Index, quarterly returns 1978–2025.

⁷ Nareit T-Tracker, quarterly REIT industry financial snapshot. Occupancy rates as of Q3 2025.

⁸ Nareit T-Tracker. US Equity REIT debt-to-book-assets and debt-to-market-assets as of Q3 2025.

⁹ Bloomberg. ECB deposit facility rate cut from 4.00% to 2.50% (Jun 2024–Mar 2026); BoE Bank Rate cut from 5.25% to 4.50% (Aug 2024–Feb 2025).

¹⁰ VanEck. Fund performance as of 31 December 2025. Past performance is not a reliable indicator of future results.

¹¹ EPRA, “2026 Market Outlook: The Year of Normalisation in European Listed Real Estate”, December 2025.

¹² EPRA, “A Decade of Change: European Listed Real Estate Sector Report 2015–2025”, 2026. EPRA Research, annual reports, Bloomberg.

¹³ EPRA Monthly LTV Monitor, December 2025.

¹⁴ EPRA Monthly NAV Bulletin, November 2025.

¹⁵ EPRA, “A Decade of Change”, op. cit. Time-series modelling: 5-year expected annual returns for Eurozone listed RE: 4.0% (downside), 7.8% (main), 11.7% (upside).

¹⁶ Nareit, “2026 REIT Outlook: Trends and Strategies”, December 2025. Nareit, “Optimising Global REIT Returns: Key Trends and Insights for 2026”, December 2025.

¹⁷ PwC and Urban Land Institute, “Emerging Trends in Real Estate: Europe 2026”, November 2025.

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This information originates from VanEck (Europe) GmbH, which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin).

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