For the second time in a row, the real estate subsidiary of Caisse de dépôt et Placement du Québec (CDPQ) closed the year with a positive performance.
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Ivanhoé Cambridge’s portfolio returned 12.4% in 2022, or 3.2 basis points more than its benchmark index (9.2%).
It is worth remembering that the Caisse real estate portfolio achieved an identical performance of 12.4% last year for 2021, doubling the return (6.1%) of its reference index.
These past two years stand in sharp contrast to the negative return of -15.6% that had seriously weighed on the Caisse’s 2020 results. In 2022 it was very different; The property portfolio is today praised by Caisse CEO Charles Émond for its “diversifying and stabilizing effect on the Caisse’s overall portfolio”.
Increasing portfolio
For its CEO, Nathalie Palladitcheff, Ivanhoé Cambridge is now reaping the fruits of its portfolio restructuring efforts over the past few years, particularly by reducing its exposure to the ailing office and shopping center sectors.
On the other hand, it increased its presence in asset classes seen as more ‘lively’ such as logistics, housing and life sciences. For example, the logistics sector now accounts for 23% of its portfolio.
The shopping center portfolio, which has been declining sharply for years, now accounts for only 11% of the portfolio. Three years earlier, it accounted for nearly a quarter (22%) of that.
Over the years, Ivanhoe completed a total of 70 transactions; approximately B$10 billion was invested in acquisitions and B$5 in asset sales. In 2022, the value of its portfolio ended the year at $77 billion, up 12% from the previous year ($69 billion).