Abstract
This paper examines the relationship between board diversity and the performance of real estate investment trusts (REITs) listed on the Johannesburg Stock Exchange (JSE) from 2013 to 2021. Focusing on racial, gender, and education diversity, the study analyses a sample of 30 REITs, representing 81 percent of the sector. The study employs fixed-effects models to show that racial diversity positively impacts funds from operations per share (FFO P/S) and earnings per share (EPS), suggesting that diverse boards enhance operational and earnings efficiencies. However, gender diversity has a significant negative effect on FFO P/S, indicating potential challenges in achieving operational efficiency. Education diversity shows minimal influence across all measures. These findings imply that racial diversity contributes positively to REIT performance, while the impact of gender diversity is more complex, and education diversity appears less significant. The study contributes to corporate governance literature by providing empirical evidence of board diversity’s impact within JSE-listed REITs. It recommends targeted strategies to enhance racial diversity and address the operational challenges associated with gender diversity, while suggesting a balanced approach to board composition, considering practical experience alongside educational backgrounds.