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European Public Real Estate Association. Stockholm 3 April 2006. Nick van Ommen CEO. Mission statement. To promote, develop and represent the European public real estate sector. EPRA’s objectives. To establish the conditions for the expansion of the sector
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European Public Real Estate Association Stockholm 3 April 2006 Nick van Ommen CEO www.epra.com
Mission statement To promote, develop and represent the European public real estate sector www.epra.com
EPRA’s objectives • To establish the conditions for the expansion of the sector • To unite the public real estate sector • To improve information to investors • To promote common and workable standards of best practice • To create a focused and effective forum www.epra.com
Committee Structure www.epra.com
Membership Profile - Total 170 www.epra.com
Definition “The long term view in terms of impact on people, environment, natural resources and economy” Source: RICS www.epra.com
Rotterdam 1940 www.epra.com
Amsterdam 1960 www.epra.com
London 2000 www.epra.com
Pudong 2006 www.epra.com
New York 2010 www.epra.com
Market Drivers • Demographic shifts favour ‘green’ buildings • Legal requirements • Governmental agencies • Demand exceeds supply • Growing institutional & public concern over climate change www.epra.com
Benefits of Investment • Meets demand based on demographic shifts • Superior risk-adjusted returns – Innovest • Reduced exposure from: energy prices, building sickness, lawsuits and market preference for ‘green’ • Credibility with investors (i.e., ABP) www.epra.com
Sustainable Listed Real Estate Companies Source: Dow Jones Sustainability Indices www.epra.com
So where does it fit? Sustainable listed companies comprise ONLY: 7% of total listed market, or 13% of FTSE EPRA/NAREIT There is a bias towards large cap companies UK & Australia lead the way US has approx. 200 listed companies with mkt cap EUR 300 bn, but ONLY Equity Office makes the list. www.epra.com
Things to do…… • Educate the investor • Educate the companies • Increase stock coverage amongst ‘green’ analysts – i.e., Innovest • We have the foundation but now we must build a broader sustainable market www.epra.com
www.epra.com www.epra.com