Los Angeles Fire and Police Pensions (LAFPP) has agreed to extend Cohen & Steers Capital Management’s mandate as its US real estate investment trust (REIT) manager for an additional three years.
The pension fund disclosed in a board meeting document that the new contract will begin in 2027, following the expiration of the current mandate on 31 December 2026.
Cohen & Steers currently manages $543.5m (€484.8m) on behalf of the pension fund.
Since establishing their relationship in November 2017, Cohen & Steers has delivered an annualised net return of 7.78% for LAFPP, outperforming the benchmark FTSE Nareit All Equity Index by 187 basis points.
However, the portfolio has underperformed year-to-date and over a one-year period by 152 and 157 basis points respectively, according to the board document.
LAFPP said that recent underperformance was driven primarily by an overweight position in the telecommunications sector, alongside stock selection within data centres, shopping centres and telecommunications.
LAFPP also plans to complete the full liquidation of a $227m US REIT portfolio managed by Principal Real Estate Investors in November.
Proceeds from the liquidation will be transferred to the pension fund’s cash account to fund upcoming private real estate commitments.
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