Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

ALTERNATIVES RESILIENT IN DOWN MARKETS While recession conditions have been unique, alternative asset REITs have generally outperformed NAREIT’s Equity Index

• In the 2000 and GFC recessions, alternative REITs outperformed the equity index across the board (even while taking losses during the GFC). • The pandemic provided another example where some alternative asset types outperformed traditional asset returns during a recessionary period. • The pandemic affected alternative asset groups wildly differently. Unsurprisingly, sectors that benefitted from affordability, migration and remote work (e.g., manufactured homes, self storage and data centers) saw strong gains since 2020 while sectors such as student housing, hospitality and healthcare saw struggles in the immediate aftermath.

REIT Performance Across Recessions

150%

125%

100%

52%

50%

31%

26%

21%

13%

12%

0%

-5%

-10%

-26%

-33%

-34%

-35%

-50%

-53%

-63%

-100%

Dot Com (2001 2002) COVID-19 (2020) NAREIT Equity Manufactured Homes Healthcare Self Storage Student Housing Data Center GFC (2008 - 2010)

Source: NAREIT, Cushman & Wakefield Research

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