pfa conference 2013 commercial property performance · 2017-06-03 · commercial property...

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PFA Conference 2013

Commercial Property Performance

IPD Australia and New Zealand

29 April 2013

PCA/IPD Pooled Property Fund Index - Unlisted Retail sponsors:


• Market Landscape

• Market Performance

• Market Themes

OUTLINE




• Market Themes

OUTLINE


Property exposure and market coverage

Institutional grade property housed by UWPFs and A-REITs

▪ UWPF = Unlisted Wholesale Property Funds ▪ REIT = Real Estate Investment Trusts ▪ URPF = Unlisted Retail Property Funds

$91

$65

$14

$50

61% 85%

28%

43%

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

IPD Mkt IPD Mkt IPD Mkt IPD Mkt

A-REITs UWPFs URPFs Other

Australian property investment marketestimated to be A$220 billion as at Dec 2012

Retail Office

Industrial Other

Market

Source: IPD Research.Note: percentages refer to market share.


IPD Australian unlisted fund database

Comprised of wholesale and retail property funds

�AMP Capital Investors

�Charter Hall Group

�Colonial First State GAM

�DEXUS Property Group

�Eureka Funds Management

�Fortius Funds Management

�Goodman

�GPT Group

�INVESTA Property Group

�ISPT

�LaSalle Investment Management

�Lend Lease

�Mirvac

�QIC

�Valad

UNLISTED PROPERTY FUND INDEX DATABASE

�FUNDS: 85 �PARTICIPANTS: 37 �VALUE: $64 billion

�Abacus Property Group

�APN Property Group

�Arena Funds Management

�Aspen Group

�Australian Unity

�Blackrock Investments

�Centuria Property Funds

�Charter Hall Group

�Clarence Property

�CorVal Partners

�Cromwell Property Group

�Denison Funds Management

PARTICIPANTS: Wholesale Funds PARTICIPANTS: Retail Funds

�Federation Centres

�Folkestone Funds Management

�Forza Capital

�Investec

�Japara

�Kinsmen Securities

�MAB Funds Management

�Mair Property Funds

�Opus Capital Group

�Sentinel Property Group

�Stockland


Fund exposure across property sectorsREITs and wholesale funds index skewed towards retail sector, retail funds index

skewed towards office sector


Sector composition of unlisted property funds

URPFs weighted towards secondary grade assets

UWPFs: 75% prime / 25% secondary URPFs: 14% prime / 86% secondary




• Market Themes

OUTLINE


Return performance across property vehicles

REITs capital growth outperforms unlisted funds


Trends in return performance across property

structures

Return profiles differ across investment structures


Unlisted retail property funds performance

Returns moderating but underpinned by strong distributed income




• Market Themes

OUTLINE


Relative pricing across property sectors

Cap rates to remain generally steady over the short-term?


Varying cap rates across property vehicles

Cap remain steady as cost of debt decreases


Investment flows trending up for unlisted funds

URPF experiencing fresh new equity capital while funds continue to deleverage


Trends in gearing across property vehicles

Gearing trends vary across property vehicles


The impact of gearing on investment performance

Significant rise in downside risk with gearing level s over 10%


Management fees to align with investment return

performance

Ongoing pressure on unlisted fund managers to reduce management fees


Investment performance reporting

Asset portfolio performance versus fund performance

-15%

-10%

-5%

0%

5%

10%

15%

Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12

Other fund variables

Other assets & liabilties

Fees

Cash

Debt

Direct property

Fund return

Direct property

Time series reconciliation analysis: components of NAV fund return


Unlisted infrastructure fund returns

Infrastructure viewed as a competing asset class to property

� As at December 2012, annual total return was 9.8% comprised of a 3.9% distributed income return and 6.1% capital return.


Enquiries

+61.2.9248.1900

www.ipd.com

Anthony De Francesco

+61.2.9248.1901

[email protected]

Sanjeev Sahota

+61.2.9248.1910

[email protected]

Benjamin Martin-Henry

+61.2.9248.1904

[email protected]

Mitchell McCallum

+61.2.9248.1905

[email protected]

Benjamin Wyburd

+61.2.9248.1907

[email protected]

Lachlan Wood

+61.2.9248.1906

[email protected]

Kimberley Slow

+61.2.9248.1903

[email protected]

Daniel Gordon

+61.2.9248.1909

[email protected]

Valerie Pontikakos

+61.2.9248.1902

[email protected]

Contacts at IPD Australia & New Zealand


Global enquiries

+44.20.7336.9200

www.ipd.com

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USA

+1.312.646.6240

www.ipd.com/usa

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How to contact IPD around the world


THANK YOU

pfa conference 2013 commercial property performance · 2017-06-03 · commercial property...

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