Chairman's
Letter

Dear INREV Members

As INREV chair, it gives me great pleasure to introduce the Annual Report for the second successive year. Like the previous year, 2022 was highly challenging, both for the industry and for the organisation. The direct effects of the pandemic might have subsided, but the world was turned upside down with war in Ukraine, and the inflation and rising interest rates which followed, bringing unpredictable conditions for European economies and real estate investment alike.

But still, as was previously seen through the GFC and its aftermath, real estate is now a resilient asset class that can rely on the collective knowledge, experience and support of its participants, helping to ensure that it does not repeat the mistakes of the past and can adapt with agility to the challenges it faces.

As an integral part of the real estate industry, INREV continued to contribute to the evolution of the asset class in 2022 by fostering best practice and collaboration among its members.

Most significant were the huge strides taken by the INREV Guidelines, which reached the end of a two- year review. This major industry project, launched in 2021, sought to ‘future-proof’ the Guidelines, making enhancements and adjustments to better reflect the needs of the industry of today and tomorrow. This included a new Sustainability module and revisions to the Valuation and Reporting modules to reflect evolving investor needs and regulations. Meanwhile, the Due Diligence Questionnaire (DDQ) was updated to encompass ESG considerations and ensure alignment with the Guidelines, while a new eLearning course was launched to enhance members’ understanding of this key INREV resource.

The Guidelines project also highlighted INREV’s growing focus on ESG, as did many other initiatives, such as the pilot study for the ESG Asset Level Index on incorporating ESG KPI’s, the public affairs focus on ESG regulations, and the addition of the first dedicated ESG seminar to the events programme – to name just a few.

At the same time, members’ demand for training and education courses continued to grow, reflecting a desire to keep ahead of the curve by staying well informed and ensuring skills remain up to date. Notable milestones in this area were the launch of the mentorship programme for young professionals and the newly available CPD certification for all INREV courses.

The continuing growth of the INREV community stands testament to its role in fostering collaboration across the industry. At the end of 2022 we surpassed the 500-member mark, amongst which investor organisations represent an impressive 24% of the total.

In a gratifyingly successful year, I would like to thank the INREV membership for their crucial contribution through our committees, focus groups and in providing vital feedback to the innovations that were made. And last but not least, I would like to pay tribute to the INREV team, led by Lonneke Lowik, for their part in making these efforts bear fruit.

Martin Lemke

INREV Chair