2024 performance

In 2024, the real estate portfolio generated a 3.70% return compared to our benchmark of 2.91%. In 2024, the Bank of Canada began cutting interest rates, which halted the decline in real estate values, helping drive overall positive returns for the portfolio.

Offices, where we had an overweight position of 20% (target 6%), were the least profitable type of property for the second year in a row. After a decade, retail has regained its position as the top performing real estate asset class. We held 20% (target 16%) in retail assets.

Investment approach

We work with top real estate managers who oversee our properties around the world. Our focus is on retail, office, industrial, and residential properties.

Our goal is to generate stable and growing income streams in our core portfolio of assets with long-term leases in place. We try to increase the value of these properties through upgrades and by making them more attractive for sale. We add value by developing market-leading properties for long-term ownership.

Capital allocation

We sold some of our properties and reallocated the proceeds away from Canada to international real estate investments. As a result, total real estate allocation increased from the end of 2023 by $700 thousand. At the end of 2024, 25% of our investments are in global properties. We plan to increase this percentage moving forward to diversity our portfolio.