Data Release! Climate Exposure in Real Estate Investment Trusts

Data Release: Climate Risk Exposure in Real Estate Investment Trusts
Four Twenty Seven & GeoPhy announce the first global dataset on REITs’ exposure to climate change
Four Twenty Seven and GeoPhy announced that they have scored 350 Real Estate Investment Trusts (REITs) for their exposure to physical impacts of climate change globally. The data product is being launched today at the Urban Land Institute Fall Meeting in Boston, MA, accompanied by a white paper that lays out the implications of climate risk for the real estate sector.

Four Twenty Seven applied its
scoring model of asset-level climate risk exposure to GeoPhy’s database of REITs’ holdings to create the first global, scientific assessment of REITs’ exposure to climate risks. The dataset includes detailed, contextualized projections of climate impacts from floods due to extreme precipitation and sea level rise, exposure to hurricane-force winds, water stress and heat stress for over 73,500 properties owned by 350 listed REITs.

“Real estate is on the frontline of exposure to climate change” said Emilie Mazzacurati, founder and CEO of Four Twenty Seven. “Many valuable locations and markets are often coastal or near bodies of water, and therefore are going to experience increases in flood occurrences due to increases in extreme rainfall and to sea level rise.” she noted. “These risks can now be assessed with great precision — the availability of this data provides investors with an opportunity to perform comprehensive due diligence which reflects all dimensions of emerging risks,” she concluded.

“The market has begun to price in the potential impacts of fat-tail climate events” noted Dr. Nils Kok, Chief Economist of GeoPhy. “Properties exposed to sea level rise in some parts of the United States are selling at a 7% discount to those with less exposure, and the value of commercial real estate is expected to equally reflect these risks. Leveraging forward-looking data on risk exposure can allow REIT investors to anticipate changes in market valuations and react accordingly.”

Read the report:
Climate Risk, Real Estate and the Bottom Line and learn more about the data.
Learn more: Webinar on climate risk in Real Estate Investment Trusts
Four Twenty Seven and GeoPhy will host a webinar to present the data and key findings on October 23, 17:00 CET / 11am EST / 8am PST. 
Key findings from the report:
  • 35 percent of REITs properties globally are exposed to climate hazards. Of these, 17 percent of properties are exposed to inland flood risk, 6 percent to sea level rise and coastal floods, and 12 percent exposed to hurricanes or typhoons
  • U.S. markets most exposed to sea level rise include New York, San Francisco, Miami, Fort Lauderdale, and Boston. The Top 3 REITs most exposed to sea level rise in the U.S. are Vornado Realty Trust, Equity Residential, and CapitaLand.
  • Globally, REITs concentrated in Hong Kong and Singapore display the highest exposure to rising seas. Sun Hung Kai Properties, worth $56 billion, has over a quarter of its properties exposed to coastal flooding.
  • 37 Japanese REITs have their entire portfolio exposed to the highest risk for typhoon globally, representing $264.5 billion at risk in properties in Tokyo and other Japanese cities.
About the product
  • REITs scores are available as a data feed with an annual license, and are refreshed quarterly to reflect changes in portfolio holdings and new climate data.
  • Climate Risk Scores are available at the aggregate level for all 350 REITs or with detailed scores at asset-level for individual REIT.
  • Online, interactive dashboard with data visualizations


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