NAREIT v/s NAREIT ( hedged)

Please shed some light on NAREIT and NAREIT - hedged and why hedged has lower sharp ratio than the other?

For the Sharpe Ratio, look at the data in the curriculum exhibit. The annualized return for NAREIT-Hedged is 30% lower, but the annualized STD is only 6% lower vs NAREIT. In the SR formula, your numerator is falling more than your denominator, thus a lower Sharpe Ratio.