2019 Real estate snapshot hero bbet体育投注官网ner
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.
Executive Director, Global Head of Real Estate Solutions Research, MSCI
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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.
|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|
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.
|of capital value at risk|
|from BWS in Australia"|
Underwater assets? Real estate exposure to flood risk
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?
|of value is not as|
|as it first appears"|
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|
|during the Brexit|
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
|NOI yield vs capex adjusted|
|yield for MSCI Global Annual|
|Property Index in 2018"|