Guidelines

Annual and interim reports should disclose any changes to the capital structure of the vehicle.

Annual

Interim

Describe material changes

In a tabular format, disclose the status of investor commitments and capital invested in the vehicle, and in particular:

• Undrawn commitments;
• Commitment drawn during the period (linkage should be made with underlying transactions);
• Returns of capital/redemptions in the period;
• Capital calls or subscriptions recorded subsequent to the period-end but before the release of the report;
• Details of redemption requests received but not processed as at the date of the report and plans to meet these requests.

In addition, the investment manager should disclose the expected drawn commitments, returns of capital/redemptions, capital calls and redemption requests for the following period. The investment manager may include assumptions used to determine these projections.

SDDS references
Section 12 Capital Commitments & Secondary Market Activity, Section 13 Capital Contributions & Other Payments to Investors and Section 15 Capital Flows of the Vehicle (for calculation of the INREV Index)
 

Annual

Interim
 

Describe material changes

Summarise and comment on key investor returns and related metrics which are defined in Section 7 of the SDDS (including comparison with targets, points of reference and indices when relevant).

SDDS references:
Section 7 Performance (according to inrev-performance-measurement#inrev-guidelines">INREV Performance Measurement module)

Annual

Interim

In addition, the investment manager may also analyse the performance at an aggregated asset level for a group of assets or for each operating asset during the period by reference to relevant asset-level KPIs defined by INREV as well as the currency used in the performance measurement of each asset.

INREV Performance Measurement module reference:
PM03, PM19

Annual

Disclose and discuss details of share class NAVs (accounting NAVs, trading NAVs, INREV NAVs as applicable) and variances since prior period-end.

Annual

Interim

Disclose and discuss distributions made during the period and subsequent to the period-end (link with underlying transactions such as property disposals where relevant).

SDDS references:
Section 14 Distributions

Annual

Interim

Summarise how the vehicle’s fee structure impacts the vehicle’s capital structure and vehicle-level returns; for instance, describe any fee capitalisation arrangements.

SDDS references:
Section 18 Investor’s Portion of Fees to the Manager and Affiliates

Annual

Interim

Describe material changes

INREV NAV disclosure requirements

Investment managers should make the following disclosures related to the NAV computation:

• The reconciliation between GAAP NAV and INREV NAV should be presented in line with guideline NAV 2;
• Investment managers should explain material estimates and computation methodologies to enable investors to understand the components of the reconciliation between GAAP NAV and INREV NAV

Explanatory notes to the reconciliation should describe key assumptions, methods used, and in particular:

• The basis for reclassifying certain shareholder loans or hybrid capital instruments as a component of equity;
• The basis for the determination of fair value of investment property, self-constructed or developed investment property, property that is leased to tenants under finance lease, investment property held for sale and real estate held as inventory;
• The basis of the estimate of other investments in real estate assets;
• The basis for the determination of the fair value of indirect investments not consolidated;
• Details of the methodology used to calculate the fair value of financial assets and liabilities;
• The basis of the estimate of the fair value of construction contracts with third parties;
• The basis of the estimate of the fair value of contractual fees;
• Details of the assumptions used to estimate the fair value of deferred tax and the tax effect of INREV NAV adjustments.
• Such disclosure gives an overview of the tax structure including, for instance, details of the property ownership structure, key assumptions and broad parameters used for estimating deferred taxes for each country, the maximum deferred tax amount estimated assuming only asset sales (eg, without taking into account the intended method of disposal) and the approximate tax rates used;
• Reasons for making adjustments to the carrying value of subsidiaries having negative equity (non-recourse);
• Under IFRS, the fair value of investment properties does not take into account the expenses incurred by the seller when selling a property. As with IFRS, no adjustment is required to include a provision for such costs in the INREV Guidelines, unless they are held for sale.

The investment manager should, however, estimate and disclose the amount of disposal costs likely to be incurred on the sale of properties, taking account of the intended method of exit, assuming an exit without duress and in the current market environment;

• Set-up costs – description of impairment and reasons for booking if applicable;
• Set-up costs – description of the reasons for departure from the five year amortisation period if applicable;
• Acquisition expenses – description of impairment and reasons for booking if applicable;
• Acquisition expenses – description of the reasons for departure from the five year amortisation period if applicable.

Annual

Interim

Describe material changes

The constituent elements of the fee and expense metrics calculation should be disclosed in the annual report.

Annual

The information in the following tables should be disclosed in the annual report.

See table in inrev-guidelines">Fee and expense metrics module.

Annual

A disclosure table should be presented that provides an analysis of all the components of the fees charged by the investment manager, including any element of performance fee or carried interest or any other such arrangement, or by any other affiliate or related party of the investment manager.

See table in inrev-guidelines">Fee and expense metrics module.

SDDS references:
11.17 -11. 20 INREV Expense Ratio, 11.23 REER, and Section 18 Investor’s Portion of Fees to the Manager and Affiliates

Annual