CAN REITS

Compensation for investment-based roles at REITs, larger firms, or pensions varies significantly based on the structure and focus of the organization. Here's a breakdown based on the most helpful WSO content:

1. REITs:

   • Analyst-level compensation at REITs can range from $53k to $81k, with bonuses being less common or lower compared to other sectors. Larger REITs often have rigid compensation structures, and carry/participation is rare unless you're at a senior level.
   • The real compensation at REITs often comes from acquisition fees for deals executed, especially for senior dealmakers. However, carry/promote is not a significant component for most roles.

2. Larger Firms (e.g., REPE):

   • Compensation at larger real estate private equity (REPE) firms tends to be higher, especially at senior levels. Incentive-based compensation like carried interest or co-investments becomes a significant part of income at the partner level, potentially reaching millions if the funds perform well.
   • At the junior level, REPE firms may offer higher base salaries and bonuses compared to REITs, but compensation is often tied to fund performance, which can introduce variability.

3. Pensions:

   • Pension funds, particularly in Canada, are known for slightly lower pay (approximately 20-25% less at mid-levels) compared to REPE firms. However, they offer excellent work-life balance and stability.
   • Associate-level roles at pensions often pay more than middle-market or lower-middle-market PE firms. Larger pensions like CPPIB, OMERS, and Teachers may also function as GPs, offering competitive compensation and direct deal experience.

In summary, REITs generally offer lower compensation compared to larger REPE firms or pensions, especially at junior levels. However, REITs can provide a more stable and structured career path, while REPE and pension roles may offer higher earning potential and more dynamic deal exposure.

Sources: RE at Pension Funds in Canada - What do they do?, REIT Compensation at the Analyst level?, Canadian Junior Bankers - Where are you going?, Career Path in Commercial Real Estate, Real Estate Q&A