A Clearer Lens on Investor Reporting

Easy access to regular valuation, financing and cash flow information on a vehicle in a standard structure has helped advance the professionalism and further transparency in thenon-listed real estate industry. From its relatively opaque state ten years ago, the industry is now in a much clearer position with regard to the structure of holdings and how their performance is evolving over time. 

The INREV Standard Data Delivery Sheet (SDDS) is a template designed to standardise the main quantitative components of the quarterly reporting data which is passed from investment managers to investors, streamlining the reporting process while providing more consistency and comparability, and has proven to be increasingly important to the non-listed real estate industry. 

Since its inception in 2012, many managers have adopted the SDDS to communicate key financial information to their investors

Since its inception in 2012, many managers have adopted the SDDS to communicate key financial information to their investors.  Investors increasingly value receiving consistent reporting information in a standardised template, while managers have used to the SDDS to streamline their reporting process, both benefitting from a clearer, transparent and standardised way of operating.  

Gerard Ottenhoff, Senior Director, Fund Services, CBRE shares the view that the more managers who get on board, the better, ‘The SDDS is an excellent standardised template for collating information in a consistent and streamlined manner. The more managers can provide standardised information to investors, the more it will benefit the industry and the SDDS facilitates this. We have been using the SDDS for all our reporting since 2014 ’

With one set of regular financial information that meets independent definitions and remains consistent over time, all stakeholders in a vehicle know what data they can expect to see and understand what it means.

The SDDS is an excellent standardised template for collating information in a consistent and streamlined manner. The more managers can provide standardised information to investors, the more it will benefit the industry and the SDDS facilitates this. We have been using the SDDS for all our reporting since 2014

And, just like after the GFC when the industry clamoured for information and insights to better inform decision making, the industry is somewhat benefitting from a similar exercise this time around following the impacts of COVID-19 and this reinforces the case more than ever for standardised, transparent and concise reporting, and to ensure everyone is on the same page. 

To stay in line with latest developments in fast evolving industry, the SDDS has been updated and looks different to the first release as the industry has evolved. In 2017, an enhanced on-line version was launched for better practicality and usefulness including the addition of new data items following investor feedback to reduce the number of ad-hoc information requests from investors that managers need to deal with. The SDDS also includes a section that managers can use to submit vehicle level data for the INREV Quarterly Index rather than manual entry via the data input tool. 

The outcomes of the planned Guidelines review project, which you can learn more here, as well as the integration of ESG reporting aspects and more granular asset level information, will be reflected in the SDDS. You can expect to see these changes in 2022 – stay tuned for more info.

Download the SDDS at www.inrev.org/sdds