Nordic property fund returns continue to improve: IPD

Nordic property fund returns continued to improve in the first quarter of 2012, delivering 3%, compared to 1.4% in the last three months of 2011, according to the latest IPD Nordic Property Fund Index (NPFI).

The index revealed a 5.4% return in the last 12 months, a significant slowdown on the 16.5% delivered for the same 12 month period in 2011 and in stark contrast to the negative 34.9% for the same period in 2009. The four year average for the index is a negative 5.0%.

The IPD NPFI measures Net Asset Value total returns from one valuation to the next and is released on a quarterly basis. 'It is good to see Nordic property fund returns continue to improve, while uncertainty still shrouds the euro-zone. Although it is important to point out that the movement of the currencies is also likely to have had a positive impact on the result of the euro-denominated index,' said Christina Gustafsson, managing director, IPD Norden.

The Nordic Property Fund Index - sponsored by Ernst & Young - consists of 10 property funds with a combined Net Asset Value of EUR 2.4 bn and a Gross Asset Value of EUR 5.1 bn at end March 2012. The gross loan-to-value ratio for the 10 funds was 53%.

The IPD NPFI is made up of funds primarily investing into Denmark, Sweden, Norway and Finland, who value their property portfolio every quarter.