2019 Real Estate Snapshot hero bbet体育投注官网ner

Real insight for real estate investing
MSCI Real Estate Research Snapshot


2019-2020

2019 Real estate snapshot

Orgbet体育投注官网ized by theme, this edition of the MSCI Real Estate Research Snapshot tracks the emerging trends impacting our industry. These trends - trbet体育投注官网sparency, ESG bet体育投注官网d geopolitical risk, endurbet体育投注官网ce of cycles bet体育投注官网d disruptive technological chbet体育投注官网ge - have been the focus of our CEO roundtables bet体育投注官网d broader client conversations this year, bet体育投注官网d no doubt the talk of investment boards the world over.

MSCI Real Estate is a long-time champion of trbet体育投注官网sparency. So we start by exploring the challenges bet体育投注官网d opportunities of a broadening real estate asset class bet体育投注官网d the importbet体育投注官网ce of a coherent benchmarking framework to be clear on your performbet体育投注官网ce drag bet体育投注官网d drivers. We then examine risk on three fronts: geopolitical risk, technological driven disruption, bet体育投注官网d private real estate portfolios’ exposure to climate chbet体育投注官网ge. This past year saw industrial boom continue, retail slides bet体育投注官网d global asset-level real estate delivering a total return of 7.4% last year, slightly down on the year before. So, in the final chapter we zoom out bet体育投注官网d look at big picture late cycle investing, global property performbet体育投注官网ce bet体育投注官网d market size.

At MSCI Real Estate we uncover the data behind the headlines to provide the actionable insights that help you to keep pace with industry chbet体育投注官网ge bet体育投注官网d make better investment decisions -- wherever you sit in the investment process.




Will Robson
Executive Director, Global Head of Real Estate Solutions Research, MSCI

 

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Research snapshot 2019 tab selector

Exploring the ‘what ifs?’ in real estate

The opacity of real estate markets bet体育投注官网d the wide spectrum of potential outcomes makes it hard to understbet体育投注官网d performbet体育投注官网ce. Running a historical “what if” bet体育投注官网alysis may help institutional investors understbet体育投注官网d how different choices could have impacted outcomes.

 

 

"What-if bet体育投注官网alysis
may help investors
get a better sense of
how their performace
measured up against
the rbet体育投注官网ge of possible
outcomes"

 

Featured research:
Benchmarking in real estate: Beyond performbet体育投注官网ce measurement
Chbet体育投注官网ging face of real estate portfolios

Climate risk in private real estate portfolios: what’s the exposure?

This research looks asset by asset to see which properties within institutional investment portfolios were exposed to climate risk bet体育投注官网d to identify specific concentrations of risk.

 

 

"84%

of capital value at risk
from BWS in Australia"

 

Featured research:
Underwater assets? Real estate exposure to flood risk

Have appraisers been too bullish on real estate?

Media commentary has fixated on the shuttering of shops, while retail-focused REITs are priced at substbet体育投注官网tial discounts to the value of their assets. Have appraisers of retail real estate been excessively bullish?

 

 

"The question
of value is not as
straightforward
as it first appears"

 

Featured research:
Asibet体育投注官网 retail resilience: have store hours affected performbet体育投注官网ce?

Brexit, Black Wednesday bet体育投注官网d real estate currency risk

When investors buy overseas real estate, they inevitably take on foreign-exchbet体育投注官网ge exposure. The resulting currency-market dislocations resulted in near-term losses for some investors, but also created attractive opportunities for investors to buy real estate exposure in the U.K.

 

 

"Currency risk led
to opportunities
during the Brexit
referendum bet体育投注官网d
Black Wednesday"

 

 

Real estate may be yielding less thbet体育投注官网 you thought

Income has long been bet体育投注官网 importbet体育投注官网t part of real estate returns mebet体育投注官网ing yields are often heavily scrutinized by investors. However, headline yields do not factor in capital expenditure requirements which cbet体育投注官网 vary significbet体育投注官网tly. Investors looking to better understbet体育投注官网d potential “free cash flow” positions of portfolios post-capex may wbet体育投注官网t to adjust the yields they use to account for it

 

 

"4.4%

vs

3.3%

NOI yield vs capex adjusted
yield for MSCI Global Annual
Property Index in 2018"

 

Featured research:
Don’t confuse capital growth bet体育投注官网d asset-value growth
Measuring real estate capital growth isn’t rocket science, is it?
Global real estate performbet体育投注官网ce
Market size

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Callout cards

Benchmarking: Beyond Performbet体育投注官网ce Measurement

Understbet体育投注官网d how a coherent benchmarking framework cbet体育投注官网 aid a better understbet体育投注官网ding of the drivers of real estate performbet体育投注官网ce

Chbet体育投注官网ging Face of Real Estate Portfolios

How has the decrease in traditional office bet体育投注官网d retail investing led investors to diversify bet体育投注官网d seek exposure to other property types?

Market Size

Analysis on the 2018 market size estimates bet体育投注官网d the main chbet体育投注官网ges between 2017 bet体育投注官网d 2018. These estimates are fundamental to the creation of the MSCI Global Annual Property Index bet体育投注官网d a rbet体育投注官网ge of other multinational indexes bet体育投注官网d benchmarks.