While the equity market slowed and the listed real estate market turned negative during the second quarter, the IPD Global Quarterly Property Fund Index (GPFI) posted another strong quarter with a 3.5% return, or an annualized 13.1% return. These were the second strongest quarterly returns since the financial crisis —the previous one being 4.1% in Q3 2010— and were based on the continued strong performance of the U.S. and a bounce-back in the European markets. The performance of the index has been particularly strong since the end of the financial crisis, with an average annual return of 11.5% over the past five years. Over this time, fund and direct returns have been very similar, unlike the years of the financial crisis when the use of leverage dragged fund level returns well below direct market returns.
Source : MSCI/IPD