Examining a 15-year period ending in 2001, the study found that projected annual returns from asset holdings that included REITs and real estate investments outweighed portfolios with no real estate holdings by as much as .27%. "Real estate should be viewed as a core asset," NAREIT senior vice president for research and investor outreach Michael R. Grupe adds. "Pension plans and other institutions have recognized this fact for many years and have capitalized on direct real estate equity and REITs for dividends and diversification."

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