Syntrus Achmea Real Estate & Finance exceeded the MSCI benchmark last year with its return on residential properties. The average return was 19.2 percent, which is 0.6 percent higher than the MSCI residential property index (18.6 percent). The largest part of Syntrus Achmea’s assets under management is invested in residential properties.
The high return will directly benefit the pension funds and other institutional investors whose capital Syntrus Achmea invests in real estate and mortgages. ‘This is excellent news for our clients,’ says CEO Arthur van der Wal. ‘Good returns on their investments help pension funds to offer their members good, affordable pensions.’
The outperformance on residential properties is the result of a recalibrated acquisition and disposition strategy in combination with active asset management. For instance, the occupancy rate exceeded the benchmark and operating costs (including sustainability improvements) were lower on average, while tenant satisfaction rose slightly. Measured over the individual residential property portfolios (separate accounts and non-listed real estate funds), six of the nine portfolios generated an outperformance.
In the retail sector, three of Syntrus Achmea’s continuing portfolios generated an outperformance compared with the benchmark (MSCI Retail Property Index: 5.0 percent). However, the portfolios that are being wound down reduced the average return to 3.5 percent, mainly due to write-downs on sales. The office portfolios achieved an outperformance of 15.7 percent (MSCI Office Property Index: 15.2 percent). In the healthcare real estate sector, for which there is not yet a specific MSCI benchmark, the return was 8.6 percent, comfortably above the absolute return benchmark (7.0 percent).
In total, Syntrus Achmea participated in the Dutch MSCI real estate index with ten portfolios in 2018. Taken together these portfolios amounted to approximately EUR 8.4 billion.