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  • Open Council Meeting at NCREIF Conference - March 22
  • Open Council Meeting - May 17


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REFER, Measure of Fund Fee Load Enhanced from Global Convergence Efforts

The NCREIF PREA Reporting Standards (“Reporting Standards”) Real Estate Fees and Expenses Ratio (REFER) has been enhanced as a result of the Council and Board’s strategic plan to converge reporting standards globally. The updated version of the paper is a direct result of the initial global convergence effort between NCREIF, PREA, INREV and ANREV and is available on the Reporting Standards website for download and immediate implementation. 

REFER is a measure of the total fee load of a fund. It serves to disclose all fees and costs incurred by the fund which are not specific to the operations of the underlying investments, regardless of whether such costs are paid within a fund or charged directly to investors or whether the charges are reported at the fund or property level for accounting and reporting purposes. As such, it provides a comparable measure of load across all funds and all fund structures.

In this current update, all associated fees and cost categories are both clearly identified and defined. In addition, a side by side comparison of which fees and costs are included in REFER and INREV’s Total Expense Ratio (TER) and Real Estate Expense Ratio (REER) is provided to facilitate global comparisons. The Reporting Standards Council continues its work with INREV and ANREV to converge reporting standards globally. Progress is being made towards a global measure of fund load which is expected to be issued in 2017. Although REFER is a recommended ratio within the Reporting Standards, we urge investment managers to report REFER in their quarterly and annual reports to investors and we encourage investors to request the REFER calculation information.

If you have further questions or need more information visit the Reporting Standards website at www.reportingstandards.info or contact Marybeth Kronenwetter, Director, Reporting Standards.


New Council Members Appointed

The Reporting Standards Board is pleased to announce the appointment of Paul Briggs, Vice President, Head of US Research, Bentall Kennedy; Barbara Flusk, Senior Vice President, Head of Investment Accounting and Financial Operations, Clarion Partners; and John Kjelstrom, Director, Chatham Financial to the Reporting Standards Council for their initial term and John Caruso, Senior Director, Head of Finance - Americas, TH Real Estate for his second term. The Board is also pleased to report that Sally Ann Flood, Partner, Deloitte & Touche has agreed to continue as chair of the Council.


Council Nominations accepted through August 31, 2016
The nomination period to identify new NCREIF PREA Reporting Standards Council members is now open through August 31, 2016. New appointees will serve an initial three year term beginning November 1, 2016. 

The Reporting Standards continue to gain momentum and our initiatives include: risk measurement and reporting, converging global reporting standards, investor outreach, ongoing dialogue with our foundational standards organizations (FASB, GIPS, USPAP) and providing standards and guidance in areas of particular interest to closed-end fund stakeholders. The Reporting Standards Board is looking for candidates who want to take a leadership role in the industry and are ready to make an impact.   
 
Seasoned institutional real estate professionals with discipline specific expertise and an interdisciplinary perspective are encouraged to complete the nomination form. In addition, nominations for qualified candidates may be submitted from NCREIF committees and PREA affinity groups. Click here for more information about the qualifications and responsibilities of Council members.
 
The Reporting Standards Board is expected to complete the selection process by September 28 and nominees will be notified of the Board’s decision shortly thereafter.  
 
Please submit completed nomination forms by August 31 or direct any questions relating to the nomination process to Marybeth Kronenwetter, Director, Reporting Standards.


​​Introduction to Reporting Standards Initiative, the 4 Ws and 1 H

Basic information and facts about the NCREIF PREA Reporting Standards can be reviewed in this 10 minute video: Introduction to the Reporting Standards Initiative. The video was developed and approved by the Reporting Standards Council and Board with substantial contributions by Bob Hess, a member of the Reporting Standards Council who spearheads our education efforts. Viewers will come to understand what exactly the initiative is; why should investors, managers and other stakeholders want strong reporting standards; who is involved; how we create, publish and enforce the Reporting Standards; and where you can find the Reporting Standards, supporting materials and links to other resources. This video is the first of what is anticipated to become a series of shelf videos which will address how the specific information produced within the initiative can be utilized, or provide a deeper dive into topic specific matters surrounding performance and risk measures, valuation and fair value accounting.


​Global Standards Fee and Expense Metrics - Update 5/18/16
First Milestone Achievement Begins Paving a Path to Global Reporting Standards
With the participation of many of their volunteer members, NCREIF, PREA, INREV and ANREV are pleased to present Setting the Right Path for Global Real Estate Standards: Fee and Expense Metrics – Phase I Results – the first joint publication towards global reporting standards. The Setting the Right Path for Global Real Estate Standards: Fee and Expense Metrics – Phase I Results bridges gaps in terminology and associated definitions of the most common fees and costs.
Investors can use this report guidance to enhance their understanding of fees (between investment managers and their investors) and costs (charged to a fund by external service providers). These include the Total Expense Ratio (TER) and the Real Estate Expense Ratio (REER) contained in the INREV Guidelines and the Real Estate Fees and Expenses Ratio (REFER) contained in the NCREIF PREA Reporting Standards. In 2017 we expect to build on this product as we complete the development of a globally consistent set of measures of fees and costs; thereby equipping investors with the tools needed to compare costs across regions.
Representatives from each association worked together to jointly develop this report. The Global Standards Steering Committee (SSC) sets the priorities for our collaboration efforts. John Caruso, Senior Director at TIAA and member of the NCREIF PREA Reporting Standards Council, along with Neil Harris, Senior Vice President at GIC and INREV Chairman, co-chair the committee. According to Mr. Caruso:
             The focus of the SSC and the sponsoring organizations is the development of global standards which provide investors more comparable and          

             transparent information that can be used to facilitate informed decision making. Fees and expense loads are always near the top of considerations  

             investors have when making an investment. The ability to compare costs on a global basis helps level the playing field for investors and is an important 

             first step towards global standards.
The SSC has other projects progressing including a converged glossary of terms and also reporting asset management information similar to that provided within INREV’s Standard Data Delivery Sheet. They have also begun discussing Net Asset Value (NAV). “A globally consistent calculation of NAV will catapult our ability to converge many key measures of performance including time-weighted returns. We are in the initial phases of discussion for this challenging project and will provide updates as the project progresses,” stated Mr. Harris.
We assert that globally consistent reporting standards must be developed by industry practitioners and welcome multiple perspectives in the discussion. Please contact Marybeth Kronenwetter, Director, Reporting Standards, for further information.


Global Standards Steering Committee – Update 10/29/15
We are pleased to present the first product of our Global Standards Steering Committee, and to update members on three global projects.

The NCREIF PREA Reporting Standards and INREV Guidelines: Broad Comparison 2015, highlights the most important differences between the INREV Guidelines and the NCREIF PREA Reporting Standards and proposes steps to bring them into closer alignment.

The report is based on a study prepared by Deloitte NL and focuses on five areas of convergence: definitions, fees and expense ratios, reporting, valuation, and NAV and fair value accounting. Two projects are currently underway to take the next step towards global reporting standards in these areas of convergence.


The Global Definitions Project strives to develop a common glossary of terms – an essential component of any converged standard.  A taskforce has been assembled and milestones are being established. This project will be on-going throughout the conversion process.

The Fee and Expense Project is converging the NCREIF PREA Reporting Standards Real Estate Fees and Expenses Ratio (REFER) with the INREV Total Expense Ratio (TER) to create a single global standard – a critical component to understand manager performance for a fund or vehicle. A taskforce has been assembled and has commenced work.  We anticipate substantial completion of the Fee and Expense Project for use in the Management Fees Term Study: for Non-listed Property Investment Funds: A Global Comparison Study published annually by PREA, using data provided by INREV.

The Reporting Project will harmonise qualitative and related quantitative reporting elements globally.  We are currently seeking volunteers to form the third project.

The Global Standards Steering Committee was established in early 2015 as a collaboration between ANREV, INREV, NCREIF and PREA to jointly develop a global set of information reporting and disclosure standards, on a non-exclusive basis, which apply and are relevant to the private/non-listed real estate vehicle industry in order to support efficiency and best practice as well as the flow of capital in this industry sector. For further information about any of our projects or if you are interested in participating, please contact Marybeth Kronenwetter, NCREIF PREA Reporting Standards Director of Operations.


NCREIF, PREA, INREV, and ANREV form Global Standards Steering Committee: first projects identified


NCREIF, PREA, INREV, and ANREV are pleased to announce the members of the Global Steering Committee who will spearshead the ongoing collaborative efforts to create global standards for vehicle reporting to investors. These senior industry leaders represent global investors, investment managers and service providers. 


Click here for more information on the Global Standards Steering Committee. 


Council Nominations accepted through August 31, 2015

The nomination period to identify new NCREIF PREA Reporting Standards Council members is now open through August 31, 2015.  New appointees will serve an initial three year term beginning November 1, 2015. 

 
The Reporting Standards continue to gain momentum and our initiatives include: risk measurement and reporting, converging global reporting standards, investor outreach, ongoing dialogue with our foundational standards organizations (FASB, GIPS, USPAP) and providing standards and guidance in areas of particular interest to closed-end fund stakeholders.   The Reporting Standards Board is looking for candidates who want to take a leadership role in the industry and are ready to make an impact.   
 
Seasoned institutional real estate professionals with discipline specific expertise and an interdisciplinary perspective are encouraged to complete the nomination form.  In addition, nominations for qualified candidates may be submitted from NCREIF committees and PREA affinity groups.  Click here for more information about the qualifications and responsibilities of Council members.
 
The Reporting Standards Board is expected to complete the selection process by September 30 and nominees will be notified of the Board’s decision shortly thereafter.  
 
Please submit completed nomination forms by August 31 or direct any questions relating to the nomination process to Marybeth Kronenwetter, Reporting Standards Director of Operations.


WEBINAR: An Introduction to the Joint Global Standards Initiative- NCREIF PREA INREV ANREV ​

Date: Tuesday, April 28, 2015
Time: 2:00 PM EDT
Hosts: John Caruso, TIAA-CREF and Sara Geiger, FL State Board of Admin


This investor only session will introduce the recently-announced initiative by NCREIF, PREA, INREV and ANREV to align reporting standards globally and explore opportunities for varying levels of investor participation.

As noted in NCREIF’s and PREA’s  joint press release, the organizations will “… collaborate on the development of uniform reporting standards for institutional real estate investment vehicles. Their goal is to provide comparable, useful and transparent information to private/non-listed real estate investors on a global basis.”


Materials from the webinar are now available. Click here for more information


​​Press Releases 3/23/2015:


New Release: NCREIF PREA Reporting Standards Executive Summary Template
Investors have reported their desire to receive consistent, comparable and uniform summary information on all of their real estate funds quarterly. The NCREIF PREA Reporting Standards Executive Summary Fund Template is a summary of pertinent information contained within a Reporting Standards compliant report as well as other information frequently provided to investors.  The template was developed through working sessions with a representative sample of users and preparers of investment reporting.  As the template is Excel based, investors can tailor it to meet their specific needs.   Investment managers are encouraged to provide this information to their investors in all types of funds (commingled and single client).   The template is available for download at www.reportingstandards.info



NCREIF and PREA to collaborate with INREV and ANREV on global reporting standards

NCREIF, PREA and INREV (and via license ANREV) have agreed to collaborate on the development of uniform reporting standards for institutional real estate investment vehicles. Their goal is to provide comparable, useful and transparent information to private/non-listed real estate investors on a global basis.  The NCREIF PREA Reporting Standards (formerly known as the Real Estate Information Standards (REIS), the INREV Guidelines and the ANREV Guidelines are currently utilized by investment managers in the US, Europe and Asia, respectively, for institutional real estate investment reporting purposes.  Representatives from each association will work together to develop a uniform global set of information reporting and disclosure standards, on a non-exclusive basis, in order to support efficiency and best practice as well as the flow of capital in this industry sector with the objective being to limit further divergence in reporting and information standards and disclosure practices..

About NCREIF
The National Council of Real Estate Investment Fiduciaries (NCREIF) is an association of institutional real estate professionals who share a common interest in their industry. NCREIF was established to serve the institutional real estate investment community as a non-partisan collector, processor, validator and disseminator of real estate performance information.

About PREA
Founded in 1979, the Pension Real Estate Association (PREA) is a non-profit trade association for the global institutional real estate investment industry. PREA currently lists over 700 corporate member firms across the United States, Canada, Europe and Asia.

About INREV
INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. We are Europe’s leading platform for sharing knowledge on the non-listed real estate industry. Our goal is to improve transparency, professionalism and best practices across the sector, making the asset class more accessible and attractive to investors. 


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