TORONTO, Feb. 16, 2012 /CNW/ - Investment in Canadian commercial real
estate delivered the strongest performance since 2006, as measured by
the REALpac / IPD Canada Annual Property Index.
The annual total return of 15.9% was up significantly relative to 2010
(11.2%) and 2009 (-0.3%). Looking at the 12 year history of the REALpac / IPD Canada Annual Property Index, 2011 was the third highest annual total return ever.
Total annual returns for the three years, five years, and ten years
ending December, 2011 remain robust at 8.7%, 9.0% and 11.2%
Examining the three major property sectors, office registered the
highest increase in total return in 2011 (16.3%) from 2010 (8.5%). Also
increasing significantly in 2011 was industrials (12.8%) versus 2010
(8.7%). Finally, retail continued its strong performance in 2011
(16.8%) and 2010 (15.6%).
Overall, the six largest commercial property markets generated healthy
total returns in 2011. Of the six largest markets, Calgary (21.6%) and
Edmonton (13.9%) had the greatest increase in total returns relative to
2010. Vancouver (15.1%), Montreal (15.0%), Toronto (14.9%) and Ottawa
(12.8%) also grew in value relative to 2010.
The 1-year performance of direct property investment (15.9%) exceeded
the return of the REIT market (15.1%), equities (-10.0%), bonds (12.8%)
and inflation (2.3%). REIT market data is based on the FTSE EPRA/NAREIT
Index for Canada. Equities are based on the MSCI Canada Index. Bonds
are based on the JP Morgan 7-10 Year Government Bond Index. Inflation
is based on data from Statistics Canada.
The REALpac / IPD Canada Annual Property Index measured over 2,100
institutional grade properties across Canada valued at $95.2 billion
CAD at the end of 2011.
Notes to editors:
IPD is a global information business, dedicated to the objective
measurement of commercial real estate performance. As the world's
number one provider of real estate performance analysis for funds,
investors, managers and occupiers, IPD offers a full range of services
including research, reporting, benchmarking, conferences and indices.
IPD operates on four continents in 25 countries. It covers 1,600 funds
and 70,000 assets with an aggregate property value of over $2 trillion
CAD. For further information visit www.ipd.com and for IPD's News Centre visit www.ipd.com/news.
REALpac is Canada's premier industry association for investment real
property leaders. Our mission is to collectively influence public
policy, to educate government and the public, and to ensure stable and
beneficial real estate capital and property markets in Canada.
REALpac Members currently own real estate assets in excess of $180
billion CAD located in the major centres across Canada. Members include
real estate investment trusts, publicly traded and large private
companies, banks, brokerages, crown corporations, investment dealers,
life companies, lenders, and pension funds. Visit us at www.realpac.ca.
PDF with caption: "Source: REALpac / IPD Canada Annual Property Index". PDF available at: http://stream1.newswire.ca/media/2012/02/16/20120216_C4708_DOC_EN_10139.pdf
SOURCE Real Property Association of Canada
For further information:
Simon Fairchild, Managing Director at IPD North America at IPD
+1 (312) 646-6248, firstname.lastname@example.org
Carolyn Lane, VP, Membership, Marketing & Communications at REALpac
+1 (416) 642-2700 ext. 223, email@example.com