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Strong performance in Canadian real estate continues

Strong performance in Canadian real estate continues

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% respectively.

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