Non-listed funds extend performance gains in Q2

European non-listed real estate funds booked overall returns of 2.55% in the second quarter of 2015, up from 2.45% in the previous quarter, according to industry association INREV.

On an annualised four-quarter rolling return basis, European non-listed real estate funds reached 9.85%, the highest level since the INREV Quarterly Index was first launched in 2010.

Henri Vuong, INREV director of research and market information, commented: ‘These results paint a picture of steady progress. They reflect an asset class whose performance is broadly tracking the fortunes of the wider economic landscape.’

Capital growth rose from 0.90% to 1.65% over the quarter, accounting for the largest element of overall performance. Income was up from 0.58% in Q1 to 0.90% in Q2.

Industrial/logistics remained the best performing sector, delivering total returns of 4.95% in Q2, followed by offices at 3.97%, retail at 2.33% and residential at 1.41%.

The INREV Quarterly Index for Q2 2015 tracked the performance of 259 European non-listed real estate funds.