EPRA Monthly Brief
September 2018
Over the last couple of months we have published a number of important and comprehensive reports on the sector and I wanted to share some of them with you here. Our research on asset allocation, cost of investing and performance of European DB pension funds, which I encourage you to fully explore here, assessed the strong performance of the listed real estate sector in European pension funds, the Building a stronger Europe report looked at the role the listed sector can play in the wider economy and an emerging markets report showed the key drivers in this market.

I was very pleased to host the EPRA Conference for the second time, particularly as it proved to be such a great success. With more than 400 registrants, a brand new and interactive debate format and an all-time high number of Award recipients for BPR and sBPR up-take, the conference was truly record-breaking in every sense. I am also pleased to report that attendance for the Investor’s Day was high and that we have received overwhelmingly positive feedback on the companies that presented.

After the conference we had a very productive week hosting Nareit for a joint pan-European outreach programme. A series of meetings were held in Finland, which saw the participation of more than 30 real estate investors, Germany, Spain, Switzerland and the UK. All of this reflects a strong interest in the listed real estate sector and demonstrates our increasi
ng investor outreach efforts in the context of MiFID II, which will also see us host our first large-scale corporate access day on December 12.

Looking forward, we will keep up the momentum of the previous months with a packed schedule of events. In October, we are organising meetings with members in Munich during the EXPO REAL and liaising with French members and investors to further strengthen relations. In addition, we will be going to Sweden and continue our effort of attracting more Swedish members to the association, and I am also looking forward to meeting Asian investors in October in preparation for the Asia week in early December and our Sustainability Workshop in London on 23 November.

Please consult the agenda selection at the end of this email and I hope to have the pleasure of  seeing you at the many events we have lined up for you for the next-coming months.

Dominique Moerenhout, EPRA CEO

EPRA news
Asset allocation, cost of investing and performance of European DB pension funds – impact of listed real estate
Covering over EUR 2 trillion of assets under management (representing over 36% of European pension assets), the CEM Benchmarking study looks at a detailed comparison of eight asset classes in terms of allocation, cost of investing and performance. The database used by CEM Benchmarking offers a unique insight into the portfolio composition of the UK, Dutch and other European institutional investors over a 12-year period with over 92% of the overall dataset based on DB pension funds. To ensure clear and consistent comparability of listed and unlisted asset classes, the returns of private equity, unlisted real estate and unlisted infrastructure have been de-lagged. Explore the full research here and access our interactive infographic for more insight.
Global REIT Survey 2018
REITs continue to further advance key achievements of the built environment, from the latest innovations in healthcare and student housing to the booming effects brought on by warehouse expansion, effectively supporting the expansion of property markets and consolidating REITS as a key component of the listed real estate sector. In September EPRA published the 2018 Global REIT Survey, which coves more than 30 countries and details recent trends and developments in developed and emerging markets and presents the success stories behind the major REIT regimes around the globe.
Record-breaking BPR & sBPR compliance
The number of companies complying with EPRA’s Best Practices Recommendations for financial (BPR) and sustainability (sBPR) reporting continue to increase and break the records, setting the 2018 Award recipients for both BPR and sBPR at an all-time high.

By adopting a structured outreach approach, the number of companies receiving a BPR Award has soared from 52% in 2015 to almost 80% in 2018 on a like-for-like basis, more than doubling the number of companies receiving an Award. This year 121 companies have earned an Award, representing 89% by market capitalisation, showing the strength of the reporting and fostering the BPR as the industry-leading guidance in assessing quality and comparability in reporting of companies. The 2018 BPR report is now available, as is the full coverage of the Bloomberg EPRA BPR fundamentals, encompassing information on all reported EPRA Performance Measures from the most recent period to fiscal year 2012, which you can access here.

The sBPR compliance follows an equally ambitious trajectory as 65 companies have received an Award this year, which is more than double the amount Award winners at the launch of sBPR in 2012. Significantly, the rising amount of Award winners demonstrates not only that reporting in line with the recommendations yields successful results  but that proactive transparency enables companies to further boost confidence in the sector ahead of regulators’ and investors’ demands of disclosure on policies, performances and risks related to Environmental, Social and Governance (ESG) factors. To this end, from next year onwards the scoring in the sBPR Awards will include a broader assessment of ESG performance. The EPRA 2018 sBPR report is now available here.
EU Initiative on Sustainable Finance
After the launch of the Action Plan for Sustainable Finance in March 2018, the European Commission recently announced the first legislative package which should be adopted ahead of the European Parliament elections in 2019. The package comprises three major legislative proposals on EU taxonomy; investor duties; as well as disclosure, low-carbon and positive carbon impact benchmarks. EPRA reviewed in great detail all three legislative proposals and assessed how to best engage with the Commission, Parliament and other institutional stakeholders. For the listed real estate sector, the biggest impact brought forward by the EU taxonomy proposal will in all likelihood concern the possibility to benefit from green incentives meant to encourage finance flows to sustainable economic activities. For a full take of our position paper and our recommendations, read our position paper  here.
EPRA Conference wrap-up
The EPRA Conference, which took place in Berlin on 4-6 September, explored the theme of disruption through different perspectives and formats. The main day was divided into two sections, with the morning sessions moderated by professor Greg Clark for the presentations made by Peter Nolan on China and the Silk Road Strategy, Geoffrey West on the theory of scale and future of cities and lastly Dror Poleg on how technology impacts real estate assets. The afternoon sessions introduced a new and interactive element, kicking off with a PropTech pitching session with five start-ups, followed by debates on the future of offices and retail under the guidance of BBC presenter Evan Davis. For Day 1, five property tours were organised which showcased key Berlin assets and for Day 3, 27 companies organised into seven thematic panels pitched to a full room of investors. We are grateful to all of our sponsors, without whom we could not produce such a successful event and we look forward to welcoming you to Madrid 10-12 September 2019. If you did not have the opportunity to join us in Berlin, either watch our highlight video or read about the presentations and property tours in the September issue of the EPRA Industry Magazine.
Additional reading
Selection for your agenda
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