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new report warns that real estate firms could face massive financial losses due to climate hazards. An analysis of 50,000 assets held by companies in the S&P Global REIT Index found that they may incur $110 billion in excess costs by the end of this decade, with costs potentially rising to $559 billion by 2050. This represents nearly a third of the asset value of the index.

    The biggest threat is extreme heat, which will affect nearly 90% of these properties by 2050. Other significant hazards include urban flooding from heavy rainfall and coastal flooding. The report highlights the growing impact of natural disasters, with insured losses reaching $62 billion in the first half of this year - a 70% increase over the 10-year average.

    While the report focuses on physical risks rather than property values, climate change is already affecting beachfront properties, causing their values to decline. Adaptive measures such as green roofs and floodproofing can mitigate some costs, but would only reduce losses by $45 billion by 2050, leaving a significant financial burden for S&P Global REIT Index companies.