Investment manager Syntrus Achmea Real Estate & Finance again outperformed the MSCI benchmark on residential assets in 2020. The average return on the managed residential portfolios was 8.7 percent: 0.4 percentage points higher than the MSCI residential (8.3 percent).
Over the past three years, Syntrus Achmea also outperformed the MSCI benchmark (13.4 percent) with an average annual return of 14.1 percent. By far the largest part of the real estate managed by Syntrus Achmea is invested in residential assets.
For healthcare real estate, for which there is not yet a specific MSCI benchmark, the return was 4.8 percent in 2020, and 9.1 annually since the fund’s creation. For retail, the direct return was nearly equal to the benchmark. However, depreciation, partly due to the prolonged closure of many stores last year, led to a total return of -9.2 percent.
The development of the real estate market is in line with the expectations expressed by Syntrus Achmea in May last year. “It was already clear then that the years of double-digit results would come to an end,” says Casper Hesp, director of investment management at Syntrus Achmea. “But certainly for residential, the returns are still above average.”
This is because many fundamentals in the real estate market remain strong, according to Hesp. “There is a significant shortage of affordable housing, especially in the Randstad. Our customers can and do make a greater contribution to solving that problem. The same applies to healthcare real estate, where the aging population is a major social challenge. And for retail, we already expect a recovery next year for the good locations.”