Global Property Fund Returns Improved on Industrial Strength

Annual Total Return by Sector

Source: MSCI Global Quarterly Property Fund Index

As at March, the MSCI Global Quarterly Property Fund Index recorded an annualized fund return of 2.1 percent. The index’s asset-level return was 120bps higher, at 3.3 percent, but varied widely across segments and regions.

Industrial property delivered a 13.3 percent annual return as the sector continued to benefit from robust demand for warehousing and logistics space.

Across regions, returns ranged from 1.9 percent p.a. for Asia Pacific to 6.5 percent for Continental Europe with the U.K. and U.S. in the middle at 3.3 percent and 3.1 percent respectively.

Globally, the 95th percentile of returns barely matched the return of the average industrial asset- testament to the strong tailwinds that has assisted the industrial sector through the pandemic.

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