National Association of Real Estate Investment Trusts (Nareit)

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National Association of Real Estate Investment Trusts (Nareit)

The National Association of Real Estate Investment Trusts (Nareit) is a U.S.-based trade association that represents REITs and other publicly traded real estate companies. It advocates for the industry with policymakers, produces research and indexes, and runs educational events to make real estate investment more accessible to investors.

Mission and role

  • Advocate for REIT-friendly policies at the U.S. and international levels.
  • Educate investors, policymakers, and the broader market about REITs and real estate investment.
  • Produce industry data, indexes, publications, conferences, and awards that promote transparency and best practices.

Nareit reports that REITs collectively own trillions of dollars in U.S. real estate assets (commonly cited around $3.5 trillion in gross assets).

Core functions

Advocacy and public policy

  • Represents REIT interests in legislative and regulatory debates.
  • Engages with federal and foreign governments to shape real estate and investment policy.

Research, publications and indexes

  • Publishes industry research, news summaries, and periodicals that track REIT performance and trends.
  • Maintains indexes that provide real-time and periodic updates on publicly traded equity and mortgage REITs.

Events and education

  • Hosts conferences, seminars and member events for investors, executives and service providers.
  • Provides investor and industry outreach to expand understanding of REIT investment mechanics and benefits.

Membership and governance

  • Open to corporate and individual members involved in the REIT ecosystem.
  • Corporate membership typically requires being a U.S. REIT, a REIT in a jurisdiction with REIT legislation, or a listed real estate company.
  • Individual membership is available to stakeholders such as investors, advisers, service providers and industry professionals.
  • Governed by an independent executive board and led by a president/CEO.

Recognition and standards

  • Honors industry leadership and best practices through awards (e.g., investor communications, sustainability, leadership).
  • Promotes ESG and sustainability through dedicated initiatives and councils.

History and partnerships

  • Founded in 1960 following U.S. legislation that enabled broader investor access to income-producing real estate.
  • Rebranded from “NAREIT” to “Nareit” in 2017 to reflect industry evolution and global growth.
  • Partners with international groups — notably FTSE Group and the European Public Real Estate Association (EPRA) — on global real estate indexes (e.g., FTSE EPRA/Nareit indices).

Special initiatives

  • Real Estate Sustainability Council (established 2016): advances environmental, social and governance (ESG) best practices across the REIT community.
  • Awards and benchmarking programs that encourage corporate transparency and sustainability leadership.

Practical considerations about REIT investing

Are REITs a good investment?
REITs can be suitable for investors seeking income, diversification and liquid exposure to real estate. They typically pay dividends but can be volatile in share price.

What drives returns?
Returns vary widely by REIT sector (office, retail, industrial, residential, mortgage, etc.). Sector exposure, interest rates, property fundamentals and management quality all influence performance.

How do REITs behave in recessions?
Some REITs (those tied to essential or countercyclical property types) can hold up or outperform, while others tied to cyclical sectors may underperform.

REITs vs. stocks
REITs trade on exchanges like stocks but function more like real estate funds: they emphasize income and property exposure. Many investors hold both stocks and REITs for diversification.

Potential disadvantages
Higher fees for some products, limited investor control over property-level decisions, and variable liquidity (especially for smaller, less-traded REITs).

Key takeaways

  • Nareit is the principal U.S. trade association for REITs, focusing on advocacy, research and industry standards.
  • It provides members with policy representation, data, events and visibility.
  • Nareit promotes sustainability and global benchmarking through partnerships and dedicated councils.
  • REITs offer liquid real estate exposure and income potential but carry sector-specific risks and variability in returns.