Kansas Public Employees Retirement System‘s (PERS) core real estate portfolio recorded a -12.2% net time weighted return over the past year, according to the pension fund’s meeting document.
This comes as Kansas PERS has yet to invest any new capital in real estate in 2024. The pension fund’s 2024 real estate pacing plan outlined potential commitments of $600m, divided into $250m for core and $350m for non-core investments.
Kansas PERS declined a request for comment. The Townsend Group, the pension fund’s real estate consultant disclosed in the meeting document that the portfolio had earned a 3.7% return on a three-year basis, 2.7% for five years, and 6.1% for 10 years.
The one-year return outperformed the NFI-ODCE Proxy Median benchmark by 60 basis points.
Kansas PERS has eight funds that make up its $2.2bn (€2bn) core real estate portfolio. According to Townsend all the funds had negative returns on a one-year basis. This included -51% by the Jamestown Premiere Property Fund, -15.6% for the UBS Trumbull Property Fund and -15% for the JP Morgan Strategic Property Fund.
Kansas PERS is redeeming its holdings in the Jamestown and UBS Trumbull real estate funds. The pension fund initiated the process with a full redemption from UBS in January 2020 and continued with Jamestown in November 2022.
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