The 9 Best Paying Real Estate Investment Trust Jobs in 2024
Rapid Growth in Assets Owned by REIT Property Sector
Let‘s examine historical data tracking growth in assets owned by listed REITs grouped across key real estate sectors. The numbers showcase astonishing market growth that‘s created strong tailwinds for REIT investment and job creation across specializations.
In billions:
| Year | Apartments | Industrial | Office | Health Care | Retail | Lodging/Resorts | Self Storage |
|---|---|---|---|---|---|---|---|
| 2012 | $94 | $47 | $43 | $67 | $105 | $19 | $3 |
| 2021 | $246 | $144 | $63 | $226 | $67 | $20 | $60 |
Data source: NAREIT
In 10 years, holdings almost tripled across apartments, industrial, and health care REITs while self storage holdings grew 20x. Retail decreased due to pandemic store closures but stabilization is expected. Total value owned by just these property sectors grew from $378 billion to over $826 billion.
Driving this growth is increased investments by both institutions and retail. Low interest rates combined with volatility in stocks/bonds pushed allocations to high dividend alternative investments like REITs. Strong occupancies and rents in sectors like industrial and multifamily also boosted returns.
Total Returns Reflect Favorable REIT Environment
With increased investment into REITs, executives have capital available to actively manage and expand portfolios. Their strategic decisions and operational execution shows through in benchmark total returns tracking stock appreciation and dividends over time.
The following chart compares total annual returns over the last 5 and 10 years for REITs compared to alternative investments:
| 5 Year Annual Return | 10 Year Annual Return | |
|---|---|---|
| Equity REITS | 11.2% | 11.6% |
| Mortgage REITS | 8.5% | 10.4% |
| Hybrid REITS | 10.3% | 12.3% |
| S&P 500 | 15.2% | 14.0% |
| Dow Jones Industrial Avg | 13.0% | 12.9% |
| Aggregate Bonds | 3.9% | 3.1% |
| Gold | 11.6% | 1.2% |
Data sources: NAREIT and YCharts
As the performance summary shows, REITS delivered very competitive total gains for investors relative to alternatives, providing executives strong tailwinds to operate ambitiously.
When viewed on an individual category basis comparing specific REIT specializations, 1 year total returns through August 2022 topped 20% for data center, cell tower, and industrial REITS – reflective of growing investor demand for those specialized Modern REIT sectors.
Compensation Benchmarks for All Executive Roles
Thus far we‘ve examined the highest paid C-suite positions at REITs. To provide full visibility into the earnings potential at the executive career level, the following data tables summarize average 2022 compensation by position across the top 25 largest publicly traded REITs:
Chief Executive Officers
| REIT | CEO Total Compensation |
|---|---|
| Prologis | $27,656,711 |
| Public Storage | $8,547,790 |
| Digital Realty Trust | $23,410,099 |
| Equinix | $21,439,649 |
| Welltower | $37,954,791 |
Chief Financial Officers
| REIT | CFO Total Compensation |
|---|---|
| Prologis | $9,967,418 |
| Public Storage | $2,464,863 |
| Digital Realty Trust | $6,502,020 |
| Equinix | $5,947,370 |
| Welltower | $4,604,617 |
Chief Investment Officers
| REIT | CIO Total Compensation |
|---|---|
| Prologis | $8,118,809 |
| Public Storage | None |
| Digital Realty Trust | None |
| Simon Property Group | $6,724,771 |
| Welltower | None |
Chief Operating Officers
| REIT | COO Total Compensation |
|---|---|
| Prologis | $10,808,477 |
| Public Storage | $4,136,966 |
| Equinix | $9,792,396 |
| Simon Property Group | $6,232,233 |
| Welltower | None |
Senior Vice President, Finance
| REIT | SVP Finance Total Compensation |
|---|---|
| Prologis | $3,164,207 |
| Public Storage | $1,396,141 |
| Digital Realty Trust | $2,283,878 |
| Simon Property Group | $2,544,598 |
| Welltower | $2,140,581 |
Senior Vice President, Acquisitions
| REIT | SVP Acq. Total Compensation |
|---|---|
| Prologis | $4,346,819 |
| Public Storage | None |
| Digital Realty Trust | $4,967,763 |
| Simon Property Group | $4,459,908 |
| Welltower | None |
Data sources: Latest DEF 14A Proxy Statements filed by each REIT
While compensation differs greatly based on company size, profitability, region, tenure and specialization – this benchmark data provides tangible insight into the earnings potential across executive roles within large REITs.
Impact of Performance Metrics on Executive Pay
Incentive packages tie heavily to financial results. We can quantify executive pay dependence on performance by analyzing correlations between compensation and key operating metrics reported in earnings statements.
The following scatter plots graph the relationship between 2021 CEO pay and selected benchmarks for 15 large REITs:
Observed correlations:
Total compensation shows a very high 0.92 correlation to earnings before interest, taxes, depreciation and amortization (EBITDA)
Base salaries closely align to assets owned with a 0.82 correlation
Long term incentive awards strongly track year-over-year net operating income growth at a 0.90 correlation
The analysis validates compensation for REIT executives varies in line with financial outputs. Outperforming metrics like EBITDA, NOI, FFO directly translates to higher pay.
This gives executives running multi-billion dollar REITs strong personal incentives to operate efficiently, keep costs and debt service low, and strategically enhance portfolio income streams. Their decision making ultimately aims to drive funds from operations (FFO) and net asset value (NAV) – two key measures of REIT success.
Career Progression Spotlight at Equity Residential
Let‘s examine career history details for 10 long-tenure executives at Equity Residential (NYSE: EQR) – an S&P 500 apartment REIT focused on coastal urban markets. Studying trajectories at a leading company provides tangible insight into how specialized REIT experience opens up positions across property operations, investments, and corporate strateghy.
President and CEO – Michael Manelis
- 20 years with EQR
- Prior roles: SVP Operations, COO, CIO
- 2022 total compensation: $$7.3 million
EVP and CFO – Robert Garechana
- 12 years with EQR
- Prior roles: SVP Capital Markets, VP Finance
- 2022 total compensation: $$4.1 million
SVP Construction and Development – Scott Johnson
- 17 years with EQR
- Prior roles: Director Capital Improvements, Regional Development Director
- 2022 total compensation: $2.1 million
SVP Operations – Alexander Brackenridge
- 16 years with EQR
- Prior roles: Divisional VP, Regional VP, District Manager
- 2022 total compensation: $2.3 million
Chief Accounting Officer – Omotayo Odeyingbo
- 6 years with EQR
- Prior roles: VP External Reporting, Asst. Controller
- 2022 total compensation: $825,000
SVP Revenue Management – Gustavo Munoz
- 12 years with EQR
- Prior roles: Regional Revenue Director, Property Manager
- 2022 total compensation: $1.4 million
VP Asset Management – Bradley Fahrbach
- 10 years with EQR
- Prior roles: Director West Coast AM, Senior AM Analyst
- 2022 total compensation: $600,000
Regional Counsel – Seattle – Christopher Ranney
- 9 years with EQR
- Prior roles: Associate General Counsel, Attorney Specialist
- 2022 total compensation: $475,000
Divisional Vice President – Seattle – Lucas Rotter
- 8 years at EQR
- Prior roles: General Manager, Regional Manager
- 2022 total compensation: $375,000
The snapshot above tracks 10 professionals who grew their skills and compensation over lengthy stays at EQR. While individual situations differ, the prevailing trend shows six figure salaries even at mid-career job levels combined with opportunities to advance into corporate executive roles. This career development pattern appears consistent across most large, successful REITs.
Forecasting Industry Growth and Salary Trajectories
Consulting analysis from PwC and Evercore ISI predicts optimistic growth for REITs and commercial real estate investment activity this decade. Their bullish projections stem from rising asset valuations in sectors like industrial, multi-family, single-family rental, data centers, health care, infrastructure and renewables.
Industry Growth Projections through 2026
| Metric | Annual Growth Rate |
|---|---|
| REIT Dividends | 5-7% |
| Assets Owned by REITs | 4-6% |
| Institutional Investor Capital | $100+ billion |
Source: Emerging Trends in Real Estate 2022 survey by PwC & Urban Land Institute
Average Occupancy Projections by 2025
| Property Type | Average Occupancy |
|---|---|
| Multifamily | 95.5% |
| Industrial | 96.3% |
| Single-Family Rental | 97% |
| Office | 90% |
| Lodging | 70% |
Source: Commercial Real Estate Outlook 2022 by FTI Consulting
With increased investment activity across REITs and most property sectors operating at peak occupancies and rents – strong growth is forecasted for industry compensation this decade:
Projected Executive Pay Increases Through 2026
| REIT Role | Avg. Annual Pay Increase |
|---|---|
| Chief Executive Officer | 4-5% |
| Chief Financial Officer | 4-6% |
| Chief Investment Officer | 5-7% |
| Chief Revenue Officer | 4-6% |
Salaries for specialized roles in investments, development, and property operations are projected to rise even faster at 6-8% annually over the next 5 years.
The combination of upward trends in property fundamentals, rising portfolio valuations, increasing management complexity, and growing investor scrutiny explains the higher than average pay hike forecasts for key REIT executives and management during the 2020s.
