LA Fire and Police received $86m in real estate redemptions; post fiscal year returns

During the second quarter, the Los Angeles Fire and Police Pension (LAFPP) received $86 million in redemptions, including a $60 million redemption from Cohen & Steers REIT, a $14 million redemption from Principal REIT and a $12 million redemption from Alliance REIT.

LAFPP’s real estate portfolio, which comprises 10 percent ($2.94 billion) of its $29.39 billion of assets under management, yielded a –6.6 percent return for the fiscal year that ended on June 30, performing better than its –7.7 percent benchmark.

Over the past three, five and 10 years, LAFPP’s real estate investments have yielded annualized returns of 5.3 percent, 4.7 percent and 7.0 percent, respectively, compared with those time periods’ respective benchmarks of 7.6 percent, 5.5 percent and 7.5 percent.

Private real estate investments for LAFPP returned –9.4 percent for the fiscal year, while public real estate investments performed better, yielding a –2.7 percent return.