Trends in Investor Reporting aims to provide insight into current market practices in investor reporting across non-listed real estate vehicles investing in Europe, and specifically the extent to which reporting complies with the requirements and recommendations of the INREV Guidelines.
The Asset Level Index measures the performance of real estate assets across Europe on an annual basis.
INREV releases a quarterly overview of the key characteristics of all non-listed real estate vehicles in Europe. The data is taken from INREV's vehicles database.
The INREV Asset Level Index is a quarterly pan-European index measuring real estate market performance on an asset level across Europe.
Brenna O'Roarty, Executive Director at RHL Strategic Solutions and Maarten Jennen, Senior Director - Strategist Private Real Estate at PGGM, discuss the The Coming of Age: the rebirth and renewal of the non-listed real estate industry 2019 paper.
Note: due to technical difficulties full recording is not available.
This paper summarises the main accounting NAV differences across regional industry practices and looks at whether the development of a global NAV would facilitate strategic decision-making for global investors.
A report released in 2019 by Urban Land Institute and Heitman details the potential risks and implications of climate change on the real estate sector. Furthermore, the report makes a call to investors and investment managers to come into action and work towards better solutions in the future, for which the report presents a number of thinking paths.
Firstly, the report aims to give property investors a better understanding of climate risk and its real estate investment implications. As such, types of climate risk and their potential impact on real estate are explained.
Secondly, the research addresses the state of current practice for assessing and mitigating climate risk in real estate as well as highlighting best practices across the industry. From the examples it becomes clear that, nowadays, climate risk insurance is used as the main protection for asset value.
Finally, it is acknowledged that climate risk insurance alone is insufficient to mitigate the risk of devaluation in the future. As such, investors and investment managers need to find effective solutions. The report touches upon a number of potential solutions:
- Mapping physical risk for current portfolios and potential acquisitions;
- Incorporating climate risk into due diligence and other investment decision-making processes;
- Incorporating additional physical adaptation and mitigation measures for assets at risk;
- Exploring a variety of strategies to mitigate risk, including portfolio diversification and investing directly in the mitigation measures for specific assets; and,
- Engaging with policymakers on city-level resilience strategies and supporting the investment by cities in mitigating the risk of all assets under their jurisdiction.
Summarised by Barbara Maltha-Koppelman, ESG Committee member
The Index is wholly comprised of open end core commingled equity real estate funds that have a strategy to invest across pan Europe and across multiple sectors. Funds must comply with a strict eligibility criteria for four consecutive quarters in a row to be included in the index.