Public outperformed private real estate last year and is expected to continue

Last year, we published a blog detailing the relationship between public and private real estate through the discount to NAV (Net Asset Value) metric. This metric emerged as a reliable indicator of relative performance. A higher discount suggests that public real estate may outperform private real estate in the coming five years.

We projected an expected outperformance of approximately 7.5% annually over this period. The chart below offers an updated analysis, distinctly illustrating the inverse relationship between premium levels and future relative performance.

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