Diversification with International REITs

The question of the diversification impact under the inclusion of international REITs into the prototype domestic REIT portfolios of Chap. 4 is addressed in this Chapter. Optimized portfolios consisting solely of the international REITs and of global (combined domestic and international) REITs are constructed and their performance compared with the domestic REIT portfolios of Chap. 4. Overall, whether employing long-only or long–short strategies, there is little evidence that diversification via international REITs can improve performance