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PrEQIn Real Estate Index: Real Estate Performance by Strategy – January 2015

by Emma Underwood

  • 23 Jan 2015
  • RE

The PrEQIn Real Estate Index depicts the average returns earned by investors within their private real estate portfolios, based on the actual amount of money invested in private real estate partnerships, to give an indication of performance since a defined point in time. Preqin also calculates further refined indices for the real estate industry for value added, opportunistic and debt strategies.

The chart above plots these indices, as well as the PrEQIn All Private Equity and Real Estate indices, rebased to 100 as of 31 December 2007. Following sharp declines in all three real estate strategy indices during 2008 and 2009, the graph shows that each has experienced quarter-on-quarter increases between Q2 2010 and Q1 2014; however, none are yet to reach their pre-2008 levels of performance.

Similarly, over the period shown, the PrEQIn All Private Equity and Real Estate Indices fell during the aftermath of the financial crisis, followed by quarter-on-quarter increases. The PrEQIn All Private Equity Index has recovered at a much faster rate than all real estate strategies, currently standing at 142.8, exceeding the pre-crisis level.

The PrEQIn Debt Index has consistently outperformed value added and opportunistic strategies, as well as the real estate asset class as a whole. However, during Q2 2014, the PrEQIn Debt Index fell from 95.5 to 94.8, whereas all other indices experienced increases, the PrEQIn Real Estate Index included.

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