PSP Investments posts positive gains for its real estate portfolio

Public Sector Pension Investment Board (PSP Investments) has ended the fiscal year on March 31, 2023, with its real estate net assets under management at $32 billion, up $900 million from the end of the previous fiscal year, generating a portfolio income of $58 million.

The five-year annualized return of 6 percent outperformed the 3 percent benchmark return. Fiscal year 2023 was characterized by a rapid rise in interest rates and changing market conditions that negatively impacted the senior housing sector as well as the North American traditional office sector. Real estate’s performance was primarily driven by the global logistics and residential sectors.

Overall, the Public Sector Pension Investment Board ended its fiscal year with a 4.4 percent one-year net portfolio return, demonstrating the benefits of diversification and active management in a challenging market environment, according to a report. Net assets under management grew to $243.7 billion, up 5.7 perc