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

by Lisa Parker

  • 11 Jun 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 the 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 December 2007. Following sharp declines in all three real estate strategy indices during 2008 and 2009, the chart shows that each has experienced quarter-on-quarter increases between Q2 2010 and Q3 2014; however, none are yet to reach their pre-crisis levels of performance.

In analyzing the PrEQIn Real Estate Index by fund strategy, over the period 2007-2014, the PrEQIn Real Estate Debt Index has consistently outperformed both the Opportunistic and Value Added Indices, standing at 100.7, 79.2 and 69.6 respectively as of September 2014. Comparatively, the PrEQIn Real Estate Debt Index stood at 104.4 as of March 2008, the highest return figure achieved within the time period, while the Value Added Index stood at 103.1 and the Opportunistic Index stood at 97.8.

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