Real estate investment strategies: key principles
Over the last five years, our real estate portfolio generated a currency-hedged return of 8.2%, $1.8 billion over the benchmark. In 2020, the portfolio produced a return of 0.2% on a currency-hedged basis, and $499 million in value added.
At year-end, our real estate portfolio had a gross market value of $15.5 billion versus $14.6 billion at the end of 2019. Despite the pandemic causing global commercial real estate transaction volumes to decline by over 30% from 2019 levels, our transaction activity during the year included approximately $2.1 billion in new investments and commitments. Dispositions of non-core assets totaled $340 million.
The key factors impacting returns were:
- Very strong performance of our industrial and logistics portfolio
- Increases in the value of our land holdings and developments in progress this year
- Negative impacts on our Canadian retail holdings and our office portfolio
In 2020, HOOPP put several building blocks in place that will drive future growth as we continue to increase the scale and scope of our real estate portfolio. Examples include:
- Commencement of over 5 million square feet of new development projects, with an estimated completion value of $1 billion
- Entry into strategic partnerships with leading specialists in the apartment, student housing, and industrial sectors in the U.S. to drive growth in that market
HOOPP’s real estate portfolio includes these properties:
To learn more about the performance of HOOPP’s real estate portfolio, including our asset mix by region and product, see our latest Annual Report.
Healthy buildings for a healthy future
2021 Real Estate Sustainability Report
Find out more about HOOPP’s sustainable investing and our commitment to environmental sustainability initiatives.
This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.
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