CDPQ’s real estate returns below benchmark but in line with expectations

Caisse de Depot et Placement du Quebec (CDPQ), a Canadian institutional investor that manages several pension plans and insurance programs in Quebec, has revealed that its real estate portfolio posted a 7.2 percent annualized return over five years, below the benchmark index’s 8.8 percent return. This was in line with depositors’ long-term expectations, according to a Feb. 20 news release.

CDPQ said the portfolio was notably affected by the weak performance of Canadian shopping centers due to declining valuations. Given the rise of e-commerce and new consumer habits, the pension fund expects to see more challenges in this sector in the coming years.

“We expect the next decade to be more challenging than the past one, during which all investors benefited from the longest bull