EUROPE – FTSE and NAREIT will launch the first investable green REIT indices early next year based on what the partners claim is "the first codified, transparent definition" of listed green property.
Currently in pilot testing, the indices reflect demand from large asset owners concerned about their exposure to a changing sector, FTSE said.
The partners expect the new indexes to pull in real estate investors looking to integrate sustainability into their portfolios and fund managers looking to develop new investment vehicles, including for the retail market.
US REITs make up 48% – $512bn (€400bn) – of the global REIT universe.
Yet existing green indexes have focused exclusively on unlisted properties.
A FTSE spokesperson said: "There are no previous definitions that provide this structured and disciplined way to measure and model the green property.
"The approach allows for quantitative rather than subjective analysis. We are finally at a point where the quality and quantity of data available is robust enough for analysis."
The indices, which will rely on ratings from third partner the US Green Building Council, will form part of the FTSE NAREIT index series.
The FTSE spokesperson described the new indexes as the "natural evolution" of an existing partnership, with the US Green Building Council, which developed the LEED standard, being "the obvious partner of choice".
