Impact score methodoloy - beta

Understanding the REIT Impact Score

The Impact Score (0–100) expresses how each REIT subsector contributes to the functioning of modern economies and society. It blends footprint and social relevance with system effects.

How the score is calculated

Formula
IS = 100 × (0.30×Scale + 0.30×Social Utility + 0.20×Connectivity + 0.20×Productivity)
Range
Each factor is scored 0.00–1.00 using bands; the weighted sum is scaled to 0–100.
Intent
Non-financial. Indicates real-world relevance and interdependence, not returns or valuations.

Factors & weights

  • Scale (30%) — economic/physical footprint; capital depth and investable reach.
  • Social Utility (30%) — extent to which the subsector serves enduring human/community needs.
  • Connectivity (20%) — integration with physical/digital/logistics/financial systems.
  • Productivity (20%) — contribution to efficiency, innovation, and output growth in other sectors.

Reading the score

A · 90–100CriticalFoundational to both economic performance and societal wellbeing.
B · 75–89CoreWidely used, high-impact sectors with enduring demand.
C · 60–74SignificantMaterial footprint; context-dependent importance.
D · 45–59SupportiveSecondary or lifestyle-oriented assets.
E · <45SpecialisedNiche or discretionary segments.
Factor scaling bands (what 0.9 vs 0.5 means)

Why this matters

The Impact Score shows how REIT subsectors underpin everyday life and system performance—from digital networks and logistics to housing, healthcare, and education. It clarifies where real estate intersects with essential services, highlights which asset types enable productivity and resilience, and supports data-informed decisions by policymakers, investors, and communities.

Interpretive note

Weights of 30% Scale, 30% Social Utility, 20% Connectivity, and 20% Productivity balance economic presence with social contribution (60%) and system effects (40%). Scores are non-financial and designed for comparability and communication; they complement—rather than replace—metrics like market cap, yield, or returns.