Alternative investments- NAREIT leverage effect

CFA Level III Portfolio Management
#1

Scheweser book 4

page 59

What is leverage effect on NAREIT ? And it says hedged REIT removes equity like effects of leverage.So are equity like and leverage effects same or different? Please shed more light on both of these issues

It also says even after removing equity like effects of leverage it still doesn’t provide best reflection of RE characteristics as REITs are still publicly traded. Why ?

#2

Nareit is leveraged compared to NCREIF and therefore has high STD and expected returns. Main idea is that it can be leveraged but NCREIF can not.

Hedged REIT removes double counting due to the presence of equity reits and that what it means by the removal of equity like effects.

#3

Can you please define more what is leveraged NAREIT?