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Sustainable Buildings Pay Of For Real Estate Investors

last modified Jul 01, 2015 04:17 PM
Green buildings perform better in the stock market, according to a study led by Dr Franz Fuerst, of The Cambridge Real Estate Research Centre, Department of Land Economy at the University of Cambridge. The study titled, ‘The Financial Rewards of Sustainability: A Global Performance Study of Real Estate Investment Trusts’, was commissioned by the Carbon War Room.

Green buildings perform better in the stock market, according to a study led by Dr Franz Fuerst titled, ‘The Financial Rewards of Sustainability: A Global Performance Study of Real Estate Investment Trusts’, commissioned by the Carbon War Room.

"Previous studies have established links between sustainability and improved cash flow at the building level, but this study widens the lens to the level of institutional investors,"said Franz Fuerst, of The Cambridge Real Estate Research Centre and Department of Land Economy at the University of Cambridge.

This study shows for the first time, that investing comprehensively in sustainability as measured by the GRESB rating pays off for REITs by enhancing operational performance and lowering risk exposure and volatility.  Analyzing a sample of REITs from North America, Asia and Europe for the 2011-14 time period, it also appears that there is a great deal of untapped potential, particularly in the REIT community, to improve the sustainability performance of corporate real-estate portfolios. For real estate assets to maintain their competitive positioning, it is critical that their owners invest in measures that improve their sustainability.

The working paper can be read on our website under working papers, The Financial Rewards of Sustainability:  A Global Performance Study of Real Estate Investment Trusts

The industry report of this paper was released on Friday 19th July on the Carbon War Room [CWR] website along with an announcement on their website: Click here to download the report.  and Twitter account https://twitter.com/cwarroom

More news announcements can be found from GRESB here and by The Environmental Leader here.

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