Connect with us on
Connect with us on
As a specialist real estate investor, Cohen & Steers has long viewed executive compensation and stock ownership as a critical pillar of governance, underpinning longer-term alignment with investors and broader stakeholders of the listed REIT sector across Asia-Pacific.
Managed properly, executive compensation can enhance value creation and growth over the longer run, help retain and develop talent and encourage sustainable business practices. Managed sub-optimally, compensation may encourage short-term behaviour, poor capital allocation and strategy, loss of key talent and risk losing the firm’s social license to operate.
Compensation and equity alignment can be challenging to get right. The pandemic has shown for a number of listed REITs that remuneration structuring and key performance hurdles were not fit for purpose, resulting in a wholesale “shifting of the goal posts” thereafter. Schemes with longer-term performance hurdles focused on securityholder returns and sustainability, with a greater lean into longer-dated stock grants, generally fared better through the cycle. An emphasis on nearer-term performance targets with outsized cash components or short-dated stock grants were ultimately more impacted by cyclical factors that were (at least partly) out of management’s control. Similarly, schemes that lacked a meaningful performance objective and were linked predominantly to the passage of time have generally not fared well.
Read MoreInsolvency resolution has been a bane for Indian policy makers and real estate lenders alike, with a poor track record in terms of recoveries and timeliness before the implementation of Insolvency and Bankruptcy Code, 2016.
In our latest report, we examine the development of the IBC relevance, impact and challenges faced in resolving insolvencies in the real estate sector. Our key findings deal with:
Resolution rates in Real Estate within IBC, compared to other sectors.
FY23 saw PE activity in real estate stable on a y-o-y basis. However, there was a keen interest in platform deals, with a total value of $4.5 Bn. Most of the large ticket platform deals were in rent-generating assets (offices & warehouses) for pan India developments, while the smaller ticket items were largely for residential developments in southern cities of India. Domestic investors were significantly more active in FY23, while foreign investors have seen their incremental investments decline. Consequently, the share of domestic PE investors in Indian RE increased from 14% in FY22 to 22% in FY23.
Download the Report Read MoreGlobal super-prime ($10m+) residential sales bounced back in Q1 2023, with 417 sales across the 12 markets tracked in Knight Frank’s Global Super-Prime Intelligence report, up 11% on the 376 recorded in Q4 2022 and the highest volume since Q2 last year.
This report was originally published in https://www.knightfrank.com.au/research/global-super-prime-intelligence-q1-2023-10221.aspx
Download the Report Read MoreRents in global luxury residential markets are continuing to see strong growth. The Knight Frank Prime Global Rental Index rose by 8.5% in the 12 months to March this year – with rents in a majority of markets hitting new records.
This report was originally published in https://www.knightfrank.com.au/research/prime-global-rental-index-q1-2023-10269.aspx
Download the Report Read More
