Inrev index turns corner in 2009

Performance in the non-listed property market saw a turning point in 2009, according to the results of the Inrev Index. In local currencies, the Inrev Index returned -7.8% in 2009 compared to -19.8% in 2008. The improvement was led by the UK which returned -6.4% in 2009 compared to -33.2% in 2008.

'The negative result for 2009 reflects the challenging year the non-listed real estate sector experienced as it started its recovery from the impact of the dramatic falls in capital values,' said Michael Morgenroth, Inrev Management Board member and Management Board Member of Gothaer Asset Management AG.

He added that the UK market, which has been more volatile during this downturn, led the improvement after falling more dramatically than the Continental market. Morgenroth: 'We now see from these figures that it has also responded more positively to improving conditions.'

For the Continent, there was also an improvement for 2009 with returns of -8.4% compared to -9.2% in 2008. This result shows that the downturn did not hit the Continent with the same severity but the recovery is also at a slower pace.

Total returns comprised a 3.3% income return and capital growth of -11.1% in local currencies. Income return has remained stable for the last two years with the fall in capital growth being the main driver for the decline in performance.

The Inrev Index measures annual net asset value-based performance for non-listed real estate funds investing 90% or more in Europe. It focuses on core and value added institutional vehicles.

The Index is currently not frozen so is not recommended for benchmarking. Inrev plans to freeze the Index in the third quarter of 2010.