
Pension funds invest in real estate so they can provide higher yields to their investors. Most of these investors are retirees living on a fixed income, making high, consistent yields even more important. Many real estate investments provide higher-than-average yields and act as a hedge against inflation.
While there are many real estate sectors, these companies have invested over $12 billion each into the below areas. Some reasons behind this include higher demand, discounted properties and low tenant vacancies.