Stan Garrun, Executive Director, MSCI
MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, has announced that Growthpoint Properties has taken top honours with the overall IPD Property Investment Award 2015 at the 13th IPD South Africa Property Investment Conference at the Table Bay Hotel in Cape Town.
The Annual IPD Property Investment Awards recognise consistent top performance of the listed and unlisted property funds per market sector in the MSCI database. This year’s awards are bestowed on the funds that achieved the highest annualised direct property total return on capital employed over three years to 31 December 2014, measured by MSCI.
Growthpoint Properties, South Africa’s largest listed property group secured the overall (all sectors) award for the second year running as well as the award for the office portfolio performance. Growthpoint achieved a 17.2% total return across its entire property portfolio – comprising 7.2% capital growth and 9.5% income return – compared with the overall benchmark return of 14.8%.
In terms of office performance, Growthpoint’s portfolio delivered a 16.7% total return, outperforming the office benchmark of 13.0%. It notched-up the top figures in this sector with 6.6% capital growth and 9.5% income return.
Old Mutual Triangle Core Fund won the award for the top performance in the retail sector. It notched up the highest returns for retail property at a 16.7% total return, which was well above the sector benchmark of 15.3%. It recorded a capital growth of 9.8% and income return of 7.9%.
Fountainhead Property Trust secured the award for best industrial property portfolio performance. It achieved top returns in this sector with a 21.5% total return, substantially outperforming the sector benchmark return of 15.7%. It recorded a capital growth of 8.7% and income return of 11.9%.
Stan Garrun, Executive Director, MSCI said: “We would like to congratulate all of our award winners on their three year annualized total return results. These awards showcase superior property performance and quality of management extracting value through investing in real estate.
“The awards are based on the ungeared property performance of the funds, measuring the total return which includes both the income return and capital growth components – thus rewarding managers for the unadorned performance of the underlying properties. Active management such as developing, buying and selling is also included in the performance calculation.”
While quality data underpins the IPD Property Investment Awards, Garrun notes its significance goes well beyond these accolades. “Reliable facts are essential for informed investment decisions and to drive confidence in the sector. Quality data underpins transparency, good systems and good governance,” he said.
The MSCI database covers 67% of all institutional and professionally managed property in South Africa.