Three successive years of outperforming the S&P 500 and Nasdaq have made REITs resonate with investors as never before. Once little known, REITs have earned an increasingly prominent role on the financial stage. And the unique ability to own real estate in a liquid, securitized form while receiving dividends and growth will keep them in the spotlight.

REITs not only bring liquidity, transparency and high-quality management to commercial real estate investing, but are also now being recognized for their low correlation with other stocks and bonds and their growth with income characteristics. REITs offer all of this while maintaining moderate debt levels—which means lower risk.

It wasn't too long ago that few people knew what a "REIT" was. But times have changed, and the news about real estate stocks is spreading—literally. REITs have become better and better known for their performance, stability, corporate governance, transparency and fiscal responsibility in the current environment.

Stress-tested by bear markets and investor infatuation with tech stocks in the last decade, REITs have a history of better performance and lower volatility than other major benchmarks, including the S&P 500 and Nasdaq. The market has disciplined publicly traded real estate companies to focus on the fundamentals. Moreover, another key distinction is that most management teams in this industry own a higher percentage of company shares than their counterparts in other industries, which puts their interests squarely in line with their shareholders.

Importantly, those interests extend to making it possible for every investor to take advantage of all that real estate securities offer. A recent study showed that less than 9 percent of all 401(k) plans even offer participants a REIT option. That percentage is rising, and one of NAREIT's ongoing priorities is to educate plan providers, sponsors and investors to the benefits of including a REIT option in every defined contribution plan. This initiative will take patience and persistence, and I ask every executive and investor to contact their plan providers to ensure that they have a REIT option.

Steven Roth
NAREIT Chair