Pension funds suffered losses on their real estate investments in 2022, with values falling by more than €14 billion ($15 billion), according to research from De Nederlandsche Bank (DNB), which supervises the Dutch pension fund sector.
In particular, listed real estate fell in value, with losses occurring early in 2022 with a peak in the second quarter of the year. The losses were mitigated by exchange rate effects, especially the stronger U.S. dollar. For this reason, losses in directly held properties also were limited, and real estate investment fund units recorded a positive value development of €1.2 billion ($1.3 billion), or 2.2 percent for the year.
The majority of pension funds’ real estate assets, held directly or indirectly through related Dutch investment funds, consists of residential. According to DNB, less than a third consists of offices, retail properties and other real estate. All of these properties are almost exclusively located in the Nether
