as an owner of REIT stock you get pretty much all of the income from the REIT - some of these have long leases. In general, a REIT has considerable leverage and as such the equity holder's claim on the asset is quite tenuous except in a big property bull market which creates considerable equity. But I dont think they would a suitable hedge for your problem.I dont see why you dont think there is sufficient price history for property. In the UK we have Nationwide and another (I cant remember what it is) that have monthly index data going back a long way. You can definitely work out a volatility and I believe a normal distribution assumption for the returns would be reasonable. Perhaps you might want to include some jumps for the crashes too.
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