The objective of the research is to investigate the relationship between financial reporting disclosure and the financial performance of European publicly traded real estate companies. Information risks and agency costs are key issues for investors. Agency costs arise when managers have incentives to pursue their own interests at the expense of investors. A lack of transparent financial information can result in greater information risk for investors who experience increased uncertainty about the true economic value of the firm creating potential adverse selection problems. Without sufficient controls and monitoring, investors will tend to pay the same prices for ‘lemons’ and ‘good’ companies. The topic of corporate governance has attracted major attention in the professional sphere and across different areas of academic research. In real estate sector, there is a body of work; most of them look at US REITS on the relationship between corporate governance and firm performance (e.g , Ghosh and Sirmans, 2001,and 2003; Feng, et al. 2005, Bauer, et. al. 2010; Bianco, et. al. 2007; Hartzell, et.al. 2008). In most of these studies, the researchers tended to focus on individual governance variables to find out which of the conventional corporate governance mechanisms, be it board size and independence, insider ownership, ownership concentration play a significant role in the governance structure of US REITS and the REITs performance and market value. Results have been mixed. In these studies, the financial disclosure transparency by REITs as one of corporate governance variables was not explicitly examined, though it is an important governance issue of a firm. In this study, we investigate whether enhanced level of financing reporting disclosure and transparency of European listed real estate companies will reduce the information asymmetry, minimise firm risk and enhance firm’s performance. The level of disclosure and transparency will be proxied by the winners of the EPRA’s best annual report survey conducted by Deloitte. To assess the linkages, a dynamic ordinary least squares model will be employed to test a range of factors that affect corporate disclosure transparency as a corporate governance variable and its impact on firm’s performance.