Resilient Property Income Fund has claimed the overall Investment Property Databank (IPD) Direct Property Investment Award 2013, at the 11th Annual IPD South Africa Property Investment Conference in Cape Town.
Resilient achieved the highest annualised total return over three years, based on un-geared property data for the funds measured by IPD. It reported a 19.3% total return across its entire property portfolio, compared with an IPD overall benchmark return of 14.7%.
The award for retail portfolio performance also went to Resilient. Its portfolio of shopping centres delivered a 19.9% total return substantially outperforming the IPD retail benchmark of 14.6%. This is the fourth time Resilient has clinched this award, supporting sustainable performance and management quality.
Last year’s winner for industrial property portfolio performance, Vukile Income Fund, again notched up the top returns in this sector with a 19.5% total return compared to the IPD benchmark return of 14.7%.
Capital Property Fund recorded the highest returns for office property performance at an 18.0% total return, well above the IPD benchmark of 13.5%.
The IPD awards highlight superior fund performance and show the value of investing in commercial property. Calculations are based on annualised results for the three years ending December 2012.
Stan Garrun, Executive Director & Head of South Africa, IPD, said, “The IPD awards celebrate outstanding performance, and we are pleased to be part of showcasing these top achievements. The calculations for the awards use objective financial criteria only, and reflect the underlying value of a property portfolio.”
The overall IPD universe comprises both listed and unlisted funds representing 65% of all professionally managed real estate in South Africa. IPD covers 72% of market capitalisation, of the listed property funds on the Johannesburg Stock Exchange. From 2013, it will cover South African REITs.
Garrun added, “The awards focus on property fundamentals and exclude the impact of gearing, fees and other financial interventions that justifiably reflect in a funds’ overall result, but may mask the performance of the underlying assets. This gives a fair evaluation of the quality of stock, asset selection and management performance. The awards are based on validated results over three years.”
Quality data is essential for measuring this performance and IPD also recognises internal data excellence. Pareto Limited received IPD’s Data Quality Award for meeting IPD’s data provision criteria of accuracy, completeness, timing and detail.
Garrun said, “To accurately measure performance, you need disciplined, quality data. This can also have a positive impact on a fund’s performance. It supports informed investment decisions based on reliable facts and confidence in the sector. Precise, pertinent data, and transparent information are the foundation of good governance.”