The Impact of ESG Integration on REIT Performance: A Comparative Study Based on Quantitative Analysis

Abstract

This paper systematically examines the impact of environmental, social, and governance (ESG) factors on the financial performance and long-term value of real estate investment trusts (REITs). Adopting comparative analysis as the quantitative research method, the paper selects representative cases of ESG-integrated REITs and traditional REITs at home and abroad, constructs a regression model, and compares projects from multiple key value dimensions, including yield, risk-adjusted returns, asset appreciation potential, financing costs, and market liquidity. The study finds that ESG-integrated REITs demonstrate significant advantages in long-term financial performance, risk resilience, and market valuation. Based on these findings, the paper proposes a series of policy recommendations, including improving ESG information disclosure standards, optimizing tax incentive mechanisms, and constructing an ESG evaluation system, to promote the high-quality and sustainable development of China’s REIT market. The paper consists of five parts: introduction of the research problem, theoretical framework, research methods (data sources and model construction), quantitative comparative analysis between ESG-integrated REITs and traditional REITs, and conclusion with recommendations.