As the world grapples with the social and economic cost of climate change, one aspect that is particularly difficult to address is how to hedge the risk of climate change for real estate-related assets. Other asset classes have liquid and functioning public markets for hedging various risk exposures. However, real estate assets have historically not enjoyed such benefits, leaving its investors and others with economic interests in real estate to self-insure or pursue proprietary and costly solutions in the private market. This paper explores whether real estate investors can self-insure against climate risk, by constructing portfolios of real estate-related stocks to generate dynamic returns that are closely linked to the occurrence of climate-related events. Specifically, the paper examines whether factor-mimicking portfolios that are constructed from a universe of real estate-related stocks can be employed as hedges against the climate risk exposure of real estate assets. The empirical results show that portfolios constructed using the maximum correlation approach provide significant improvements over those constructed using the least mispricing approach in terms of the absolute portfolio performance and the ability to efficiently track the climate risk proxy employed in this paper. Hedging portfolios of real estate holdings with climate risk mimicking portfolios also results in a significant improvement in the mean-variance efficiency of the real estate portfolios.