In this paper we analyze if the non-financial performance of real estate firms is associated with a decreased cost of capital. Specifically, we assess if firms with higher environmental, social, and corporate governance (ESG) performance benefit from reductions in the cost of debt capital. As ESG performance is associated with higher transparency, it is likely to be rewarded by private debt holders through better lending conditions. We draw on an international sample of real estate companies to test our contentions. Our findings suggest that firms with high ESG performance have a lower cost of debt relative to firms with low ESG performance. The results of this study bring important contributions to the academic literature and have significant practical implications.