The returns for the MSCI Global Quarterly Property Index bounced back to pre-pandemic level by Mar 2021 and peaked in Dec 2021.

A comparison between the 12 month Mar 2022 Total Return and Dec 2021 2-year annualized Total Returns indicates a trend of widening spreads.

The quarterly markets of USA, UK, Australia, Netherlands, Canada and Ireland have higher weights in the samples.

MSCI Global Annual Property Index tracks the unlevered performance of over 57,000 property investments in 27 countries, with a total capital value of USD 2,144.7 billion.

Under the default scenario (2°C AIM CGE Advance), transition value-at-risk is estimated at 2.8%, but could be higher under some alternative scenarios.

The model estimates the largest contributors to physical risk are coastal flooding and tropical cyclones under the default physical risk scenarios.

Real estate’s unique characteristics may make property portfolios particularly vulnerable to climate-change risks.

Consumer price inflation outpaced net operating income growth in most countries in 2021 meaning most countries experienced negative real NOI growth.

These allocation shifts have been driven by differences in both the rate of asset value growth, as well as by differences in net investment activity.

While office and retail assets have historically been the cornerstone of most institutional portfolios, their weight in the index has declined over time.