With the exception of self-storage, the composition of the new index by property type is similar to that of the NCREIF Property index, the longtime industry standard for private real estate. Composition by region is virtually the same for both indexes.*Data totals more than 100% due to rounding. Sources: Pension Real Estate Association and IPD Group Ltd.
The index allows investors to examine contributions to unleveraged returns by active property status. For the year ended June 30, 'stabilized' properties (at minimum 75% leased) owned throughout the period accounted for 89% of unleveraged returns.Sources: Pension Real Estate Association and IPD Group Ltd.
The unique aspect of the index is its ability to provide investors insights into performance drivers of real estate funds, notably the effect of leverage on total returns.**General & administrative, does not include performance fees. Sources: Pension Real Estate Association and IPD Group Ltd.
Property Fund index not only tracks performance of open-end real estate funds, but also allows investors to examine various performance drivers.