The longer the cycle lasts, the more attractive REITs look to institutional investors. : With late cycle uncertainty emerging as the market slows, institutional investors are allocating more capital to REITs than private equity funds, as REITs have historically outperformed broad equities in late-cycle periods. For examples, California State Teachers’ Retirement System (CalSTRS), a $227.8 billion pension fund, recently announced a $100-million commitment to REITs, its first-ever entry into the sector.