Los Angeles Fire & Police renews REIT contracts with Principal Real Estate
Los Angeles Fire & Police Pensions (LAFPP) has approved a new three-year contract with Principal Real Estate Investors for a domestic and global real estate investment trust (REIT) manager relationship.
In a meeting document, the $23.2bn (€21.1bn) pension fund said it will extend the $203.7m global portfolio and the $187.9m US-only portfolio contracts due to expire by the end of next month.
The benchmark used for the global REIT portfolio – which targets a portfolio of 85 to 95 securities – is the FTSE EPRA/NAREIT Dividend Index.
Principal as outperformed the index since inception and on a one-year basis. It has exceeded the benchmark by 134 basis points since its February 2014 inception and by 303 basis points for one-year.
The US-only portfolio’s benchmark is the Dow Jones US Select Real Estate Securities Index. Principal has outperformed the index by 171 basis points since it started this relationship in 2006.