A Case for Private Real Estate Funds
The graph shows Price: Net Asset Values (NAV) for the S&P TSX REIT Index. Note the fluctuations are beyond a reasonable NAV band. In 2020, the S&P Capped REIT Index declined 18%
overall, with 2020 was by far the most volatile year in Canadian REIT history – the sector was +9% through February 20 before declining 47% through March 23 as the worst fears of the COVID-19 pandemic played out across the broader markets. From there to December 31, it recovered ~43% with most of the increase occurring by mid-April, and then from mid-November on. Investing in private real estate funds ensures returns are tied directly to the underlying value of the real estate.
A Value-Focused Manager With A Proven Track Record
Crown is value-focused with returns generated from value add initiatives. Gross IRR are reported in this backward-looking analysis which references asset-level business plans presented to the Investment Committee of each fund.
Open vs Closed End Fund Performance
Crown value-add funds consistently generate out-sized returns.
MSCI’s Property Fund Index (PFI) tracks the performance of 8 open ended funds and incorporates cash, leverage (max 30%), property level expenses and management fees into the returns.
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Disclaimers and Risks
This presentation has been prepared by Crown Realty Partners. None of Crown Realty Partners or any of its affiliates is registered under any securities law of any jurisdiction. This presentation and the information contained herein do not constitute, and do not form part of, an offering document or an offer to sell, or a solicitation of an offer to purchase, any units in the Fund. Any such offer or solicitation may only be made via, and in accordance with, the terms of the subscription documents of the Fund (collectively, the “Offering Documents”) and the constitutional documents of the Fund. This presentation is qualified in its entirely by such Offering Documents and constitutional documents. An investment in the Fund will involve significant risks due to, among other things, the nature of the Fund’s investments. Investors must have the financial ability and willingness to accept the risks characteristic of an investment in the Fund. An investment in the Fund is suitable only for sophisticated Investors. Past performance may not be repeated or indicative of future results. Performance numbers are neither audited nor independently verified. In this presentation, “IRR” represents the compounded, annual based on actual sales proceeds or year-end appraised values, taking into account asset management fees, paid and unrealized incentive fees and other fees and expenses. IRRs are calculated using the time series method and incorporate cash inflows and outflows as they actually occur. This presentation is confidential and is intended for use by the designated recipient only. The presentation may not be distributed without the express written consent of Crown Realty Partners. The information provided herein is current only as of December 1, 2020, and may, therefore, become stale. All amounts are in Canadian dollars, unless otherwise indicated.