Investment Property Databank
Encyclopedia
Investment Property Databank (IPD) is an independent body that provides performance and risk analysis for real estate for investors, managers, REITs, lenders and advisors. IPD’s property performance benchmarking
is its core activity, with investors and fund managers in each market providing detailed portfolio
information which, when assembled and analysed, is used to assess investment performance
.
IPD, along with other industry bodies - British Property Federation
(BPF), Investment Property Forum (IPF), Association of Real Estate Funds (AREF), has been important in bringing transparency and accountability to the property industry, allowing all fund types that deal in property (pension, investment, REITs, etc) to benchmark their performance and increase their accountability to shareholders and government alike.
The IPD Pooled Property Fund Indices (PPFIs) provide information on the total returns investors can expect to receive from unlisted fund investments. The first PPFI was established in 2000 in the UK; PPFIs are also available for Italy, Germany, Australia, the Nordics and Pan-Europe. Each PPFI details total return
, leverage ratio, distribution yield, net asset value
and index asset allocation.
Index results and all IPD standard research publications are based on standing investment properties. These must be revalued at least once a year and exclude the effect of buying, selling and development. Headline results from IPD indices are freely available to the public.
Property derivatives
IPD indices are used as the bases of real estate derivative contracts. Trading began on the IPD UK Annual Index in January 2005, which still commands the largest volumes. A substantial volume has also been traded on the IPD France and Germany Indices, with further trades on IPD indices for Australia, Canada, Italy, Japan, Netherlands, Spain and Switzerland. As at September 2011, there are 20 investment banks with licences to trade on IPD indices.
In 2005 an ownership restructure was combined with constitutional changes to reinforce the independence of the company. The current ownership position has around 44% ownership by directors and staff involved in the business, and 56% by institutional investors and surveying firms.
The IPD Group head office is in London UK, with business units in France, Germany, Sweden, South Africa, Hong Kong, Australia, the Netherlands and the US. IPD has twice received the Queen's Awards for Enterprise
(international trade) in 2005 and 2010. At 31 December 2010 IPD had 314 full-time equivalent staff.
Benchmarking
Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time and cost...
is its core activity, with investors and fund managers in each market providing detailed portfolio
Portfolio
Portfolio literally means "a case for carrying loose papers," ....
information which, when assembled and analysed, is used to assess investment performance
Investment performance
Investment performance is the return on an investment portfolio. The investment portfolio can contain a single asset or multiple assets. The investment performance is measured over a specific period of time and in a specific currency....
.
IPD, along with other industry bodies - British Property Federation
British Property Federation
British Property Federation is a membership organisation that promotes the interests of companies those involved in property ownership and investment. It was incorporated in 1963 as a limited company...
(BPF), Investment Property Forum (IPF), Association of Real Estate Funds (AREF), has been important in bringing transparency and accountability to the property industry, allowing all fund types that deal in property (pension, investment, REITs, etc) to benchmark their performance and increase their accountability to shareholders and government alike.
Indices
IPD publishes annual property indices in 25 national markets measuring total returns for all directly held real estate assets and the four main market sectors - retail, office, industrial and residential. The availability of biannual, quarterly and monthly indices is dependent upon the presence of valuation regimes in any given country.The IPD Pooled Property Fund Indices (PPFIs) provide information on the total returns investors can expect to receive from unlisted fund investments. The first PPFI was established in 2000 in the UK; PPFIs are also available for Italy, Germany, Australia, the Nordics and Pan-Europe. Each PPFI details total return
Total return
The total return on a portfolio of investments takes into account not only the capital appreciation on the portfolio, but also the income received on the portfolio. The income typically consists of interest, dividends, and securities lending fees...
, leverage ratio, distribution yield, net asset value
Net asset value
Net asset value is a term used to describe the value of an entity's assets less the value of its liabilities. The term is most commonly used in relation to open-ended or mutual funds because shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net...
and index asset allocation.
Index results and all IPD standard research publications are based on standing investment properties. These must be revalued at least once a year and exclude the effect of buying, selling and development. Headline results from IPD indices are freely available to the public.
Property derivativesProperty derivativesA property derivative is a financial derivative whose value is derived from the value of an underlying real estate asset. In practice, because real estate assets fall victim to market inefficiencies and are hard to accurately price, property derivative contracts are typically written based on a...
IPD indices are used as the bases of real estate derivative contracts. Trading began on the IPD UK Annual Index in January 2005, which still commands the largest volumes. A substantial volume has also been traded on the IPD France and Germany Indices, with further trades on IPD indices for Australia, Canada, Italy, Japan, Netherlands, Spain and Switzerland. As at September 2011, there are 20 investment banks with licences to trade on IPD indices.History of IPD
IPD was established in 1985 with a holding company structure in place so that non-employee shareholders (at that time 10 firms of chartered surveyors holding 49% of the equity) could not influence IPD’s index construction and publication policies, nor have access to confidential data.In 2005 an ownership restructure was combined with constitutional changes to reinforce the independence of the company. The current ownership position has around 44% ownership by directors and staff involved in the business, and 56% by institutional investors and surveying firms.
The IPD Group head office is in London UK, with business units in France, Germany, Sweden, South Africa, Hong Kong, Australia, the Netherlands and the US. IPD has twice received the Queen's Awards for Enterprise
Queen's Awards for Enterprise
The Queen's Awards for Enterprise is an awards programme for British businesses and other organizations who excel at international trade, innovation or sustainable development. They are the highest official UK awards for British businesses...
(international trade) in 2005 and 2010. At 31 December 2010 IPD had 314 full-time equivalent staff.