realestate · Asset composition · Tuzel (2010)

Real estate holdings

Long minus short decile portfolio, value-weighted, market-adjusted. Quarterly, 1970Q3 to 2024Q4.

Expected return · posterior mean, % per year, averaged over the window
Next quarter
2026Q4
2.77%
95% interval −0.53% to 6.28%
Next year
2026Q4–2027Q3
2.74%
95% interval −0.57% to 6.21%
Next five years
2026Q4–2031Q3
2.64%
95% interval −0.76% to 6.14%

Forecast made 16 Sep 2026, conditioning on this portfolio's OAP returns, which end 2024Q4. The 7 quarters between then and 2026Q4 are unobserved and are integrated out under the model.

Cumulative market-adjusted return

+219% since 1970Q3 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1970Q3–2024Q4 2.93% 12.76% 0.23 1.69
2020Q1–2024Q4 2.38% 20.66% 0.12 0.26
2024Q1–2024Q4 18.78% 19.20% 0.98 0.98

Forecast Sharpe ratio, annualized

Window Mean 95% interval P(neg)
2026Q4 0.22 −0.04 – 0.49 0.05
2026Q4–2027Q3 0.21 −0.04 – 0.47 0.05
2026Q4–2031Q3 0.19 −0.06 – 0.44 0.06
Category
Asset composition
Form
Continuous
Data
Accounting
Sorted on
High minus low
Names per leg
207 long / 204 short median · 135 at the 10th pctile
Original sample
1971–2005