Feb. 19 /CNW/ - IPD today released the 2008 results for the
ICREIM / IPD Canada Annual Property Index, which at the end of December 2008
covered C$96.5 billion of commercial real estate. The Index saw a total return
for 2008 of just 3.7%, down sharply from the 15.8% recorded in 2007, and the
lowest level since 1994.(1)
Despite the softening of investment yields, direct property still
outperformed equities, which fell by -31.4% according to the MSCI Canada
Index, and REITs which returned -39.3% according to the FTSE EPRA/NAREIT
Index, but trailed bonds which returned 15.2%, as measured by the JP Morgan
7-10 Year Government Bond Index.
"Declines in property values account for the weaker returns recorded in
2008, with on average capital value write downs of 2.3%," said Doug Rowlands,
Senior Manager at IPD.
