The Impact of ESG on Real Estate Investment Trusts Performance

This thesis provides a thorough examination of the financial and operational advantages linked to sustainability practices while examining the effect of Environmental, Social, and Governance (ESG) compliance on the performance of Real Estate Investment Trusts (REITs). The study uses econometric models to assess the correlation between ESG scores and important performance indicators, such as Net Asset Value (NAV), Funds From Operations (FFO), and Return on Assets (ROA), based on a dataset that spans 15 years and includes 181 REITs from various countries. The results show that ESG compliance has a beneficial impact on REIT performance, with governance benefits taking time to manifest while environmental and social factors drive financial stability and efficiency. ESG's strategic significance in investments is further supported by the fact that its advantages are most noticeable in the short to medium term.