The role of Real Estate Investment Trusts in financing building renovation in Europe

Recently, investors have shown increasing interest in open real-estate funds, also known as Real Estate Investment Trusts (REIT). A REIT is a publicly traded closed-end investment company that invests in a managed diversified portfolio of real estate or real estate mortgages and construction loans rather than in financial securities, such as stocks or bonds. REITs are set up as corporations or trusts and are not subject to tax at the corporate level if they distribute at least 90% of their net annual earnings to shareholders and meet certain other requirements.

REITs manage a considerable volume of assets in the EU and worldwide. Investment strategies are not yet fully taking into account the risks and opportunities linked to climate change. Sustainability criteria and ESG (environmental, social and governance) strategies are of particular importance to tap into the huge energy-saving potential of the real estate sector. REITs could therefore play a significant role in financing building renovation in Europe, though only a few sustainable real-estate funds are in operation, while the majority of funds still need to align their strategies with long-term climate targets.

The webinar will provide an overview of the sector, assess how REITs can contribute to climate goals, explore strategies and initiatives to make them greener and showcase some good examples. It will be moderated by the European Climate, Infrastructure and Environment Executive Agency (CINEA).

The presentations are available for download in the dedicated page in CIRCABC. The video recording is available on YouTube.

This event is organised as part of the Sustainable Energy Investment Forums initiative, funded under the EU Horizon 2020 programme and managed by the european Climate, Infrastructure and Environment Executive Agency (CINEA).