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Guidelines
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Fund documentation for reporting framework
The basis, frequency and timing of delivery of the audited and non-audited financial statements, and management reporting for investors should be defined in the fund documentation. The manager should provide at least one interim report to its investors, in addition to the annual report. |
Annual | Interim |
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Content and frequency of reporting
The quantitative information presented in the SDDS should be provided either using the SDDS template proposed by INREV or otherwise disclosed in annual and interim reporting to investors. |
Annual | Interim |
The financial statements provided in the annual report to investors should be audited. | Annual |
Elements of the overall package of annual and interim reporting to investors, however configured, should be internally consistent. For instance, information presented in the manager, property and other reports should be consistent with information in the SDDS template, if separate, and the financial statements. Also, the basis of preparation of information contained in interim reporting to investors should be consistent with annual reporting to investors. Any differences or exceptions should be explained. |
Annual | Interim |
Full year-end audited financial statements should be provided to investors. These should contain:
SDDS references: |
Annual |
Full year-end audited financial statements should be provided to investors. These should contain:
SDDS references: |
Annual |
Abridged interim financial statements should be provided to investors. Managers and investors should agree on the format of the interim financial statements. | Interim |
For interim reports, use the same terminology and KPIs as used in the annual report. If new terms or KPIs are used, the manager should explicitly define them. SDDS references: |
Interim |
For annual reports, describe the overall status of the vehicle’s INREV compliance. In doing so, disclose the level of compliance with INREV Guidelines by module. Include any relevant explanations, reconciliations and calculations as appropriate. Management (in the event that, for instance, INREV corporate governance framework is not being adopted) and/or non-executive officers/those in charge of governance should review this statement and the basis for making it. |
Annual |
For interim reports, disclose level of compliance with INREV interim reporting guidelines. Reference should be made to annual report for detailed description of the level of compliance with reporting requirements Management (in the event that, for instance, INREV corporate governance framework is not being adopted) and/or non-executive officers/those in charge of governance should review this statement and the basis for making it. |
Interim |
Disclose that the interim report should be read in conjunction with year-end investor report. | Interim |
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General vehicle information, organisation and governance
General information on the vehicle characteristics including, among others, name, domicile, legal form, vehicle style (by reference to INREV’s vehicle style definitions), description of vehicle structure, vehicle currency, vehicle year-end. SDDS references: |
Annual |
Interim Describe material changes |
Contact details of the vehicle. SDDS references: |
Annual |
Interim Describe material changes |
Describe the vehicle’s governance framework and the organisation of management and administration. For example, identify the AIFM, administrators, trustees, depositories, general partners, risk managers, investment advisors, portfolio managers, asset and property managers, valuers and other key functions as appropriate. SDDS references: |
Annual |
Interim Describe material changes |
Identify and discuss vehicle governance and oversight frameworks such as the use of independent directors and investor or other special committees, and how they operate. |
Annual |
Interim Describe material changes |
Describe the level of adoption of INREV corporate governance best practices. |
Annual |
Interim Describe material changes |
Annual and interim reports should describe the level of compliance with the corporate governance framework defined in the fund documentation. |
Annual |
Interim Describe material changes |
Present a short, high level summary of the vehicle strategy. SDDS references: |
Annual |
Interim Describe material changes |
ESG-LTS 1.1 Requirement – Vehicle Long Term Strategy Describe the overall approach to setting a long term ESG strategy for the vehicle. Make reference to the overall governance approach, which is covered in the INREV Corporate Governance Guidelines. Detail the long term (2 to 10 years) ESG strategy for the vehicle. As best practice you can consider the aspects set out below: Asset management ESG strategy:
ESG references: |
Annual
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Describe key milestone dates in the life of the vehicle (including vehicle term, investment period, closing dates, etc). SDDS references: |
Annual |
Interim Describe material changes |
Describe the investment stage of the vehicle in the context of key milestone dates, by sector/geography. SDDS references: |
Annual |
Interim Describe material changes |
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Capital structure and vehicle-level returns
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:
In addition, the manager should disclose the expected drawn commitments, returns of capital/redemptions, capital calls and redemption requests for the following period. The manager may include assumptions used to determine these projections. SDDS references: |
Annual | Interim |
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: |
Annual |
Interim |
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: |
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: |
Annual | Interim
Describe material changes |
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Manager's report
Summarise and discuss macro-economic factors which have, or may have, a material impact on the results of the vehicle. This should include information such as economic growth factors and their impact on the demand for new rentals, the supply of property or availability of development opportunities. Include also details of material changes in the tax and regulatory environment and debt financing conditions, such as movements in interest rates and financing terms. |
Annual | |
ESG-ANN 1.1 Requirement – Annual Objectives Based on the strategy of the vehicle described in ESG-LTS 1.1, set out the annual objectives and associated targets for the coming 12 month reporting period. As best practice you can consider the aspects set out below: Asset management ESG initiatives:
ESG references: |
Annual |
Tabulate for clarity a summary of significant events affecting the vehicle during the period as well as significant events anticipated in the 12 months from the balance sheet date. Provide a brief commentary on significant activities of the vehicle including acquisitions, disposals, distributions to investors, and changes to the overall financing or capital structure during the period. |
Annual | Interim |
Analyse the performance of the vehicle during the period by reference to relevant vehicle-level KPIs defined in sections 3.1, 3.2 and 5 of the SDDS, which include information such as the NAV, key financial ratios, valuation results, realised gains and losses and information related to operating results. SDDS references: |
Annual | Interim |
ESG-ENV 1.1 Requirement – Environmental Data Absolute data and like-for-like Disclose absolute environmental data and like-for-like data for the proportion of the vehicle’s portfolio that is in the fund manager’s operational control. This should cover:
Intensities Report the intensity ratios for energy and GHG emissions per property type. As best practice, the calculation methodology should be detailed, including applied normalization factors and which types of energy / types of GHG Emissions are included in the ratio. The environmental data should be presented in line with GRESB or GRI / EPRA methodology. Please disclose which methodology has been used. ESG references: |
Annual |
Describe and comment on the structure of fee arrangements with managers and affiliates (including details of any relevant capitalisation or disbursement programs, year-end balances, amounts earned, accrued, paid or clawed back). Link accrued and un-accrued amounts with the realisation of performance criteria. When applicable, this description should include details of:
Refer to the relevant sections of the financial statement disclosures for details as appropriate. SDDS references: |
Annual |
Interim Describe material changes |
Disclose the NAV of the vehicle and the basis of calculating it. Disclose to what extent the INREV NAV guidelines have been used to determine such NAV, and include details of adjustments made to reconcile the NAV with the financial statements. Include a description of the judgments and estimates used when determining the INREV or other NAV. SDDS references: |
Annual |
Interim Disclose the NAV and material changes to methodologies and assumptions |
Discuss the current period performance in the context of the track record of the vehicle (for instance, over the last five years). |
Annual |
Describe all significant subsequent events affecting the vehicle since the period-end and comment on their impact on vehicle performance if relevant. |
Annual | Interim |
Describe the likely developments in the vehicle’s business in the foreseeable future and how this is aligned with achieving the overall vehicle objectives. |
Annual |
Describe the impact of potential or implemented regulatory changes that affect or may affect the vehicle’s operations and performance. |
Annual | |
ESG-LTS 1.2 Requirement – Vehicle Long Term Strategy Detail the vehicle’s approach for ensuring compliance for current legislation relating to ESG issues is in place. ESG-ANN 1.2 Requirement – Annual Objectives Detail objectives for the next 12 month reporting period for ensuring compliance with current legislation in relation to ESG and about preparations for any future legislation that may be undertaken in this period. ESG-POR 1.2 Requirement – Annual Portfolio Information Report against compliance with current legislation requirements and objectives and associated targets for preparations for upcoming legislation. |
Annual |
Describe and comment on any significant one-off events having an impact on the results for the period. This disclosure should include, for instance, costs related to litigation, abort deal costs, one-off property related expenses and any other extraordinary or exceptional items. | Annual | Interim |
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Property report
Describe and comment on current developments in the vehicle’s investment property portfolio by reference to, for example, occupancy level, tenant profile by area occupied, average rent, the percentage of newly developed property that has been let or sold, etc. SDDS references: |
Annual | Interim |
Describe the business rationale for any significant acquisitions or disposals during the period, and their impact on the vehicle’s financial position and results. SDDS references: |
Annual | Interim |
For interim reports, show a summary of the portfolio allocation by sector and geography. SDDS references: |
Interim |
For annual reports, show a summary of the portfolio allocation by sector and geography and comment on it in the context of the investment strategy of the vehicle (refer to the detailed portfolio allocation sheet in the SDDS). SDDS references: |
Annual |
Summarise and comment on property valuation methods used for investment properties, properties under construction, land and ground leases. Include information on the methodologies used and the key market inputs and assumptions such as yields, discount or capitalisation rates. Describe any specific or special assumptions used in the property valuations such as assumed disposal scenarios, assumed capital expenditure and the treatment of transfer taxes. SDDS references: |
Annual |
Interim Describe material changes |
Disclose the proportion of the property portfolio which has been subject to an independent external valuation along with references to the name and qualifications of the valuers, and the date of such valuations. Include details of any modifications or reservations disclosed in the valuers’ reports. SDDS references: |
Annual |
Provide an analysis of like-for-like movements in the market value and rental income of properties held in the current and prior periods. |
Annual |
Comment on the development of rental growth and expected rental values by sector/geography. The market data provided should be relevant to the specific activities of the vehicle. |
Annual |
Interim Describe material changes |
Describe recent leasing renewal activity, including incentives given, rent-free periods and tenant improvement programs and expected future changes by reference to market trends in new lease terms. |
Annual |
Interim Describe material changes |
Summarise and comment on the development of vacancy rates and its impact on vehicle performance and future prospects. SDDS references: |
Annual |
Interim Describe material changes |
Discuss the developments of property yields, including yields by sector and geography. SDDS references: |
Annual |
Interim Describe material changes |
Discuss the developments of other key property information by sector and geography, when relevant. |
Annual |
Interim Describe material changes |
Identify and comment on rental concentration risk (either by expected rental value or actual rental value). |
Annual |
Interim Describe material changes |
Describe and comment on the level of property operating costs and, if significant, discuss the impact of specific factors such as service charge recoveries, bad debt write-offs and other property operating costs related to the vehicle’s performance. |
Annual | Interim |
If material, describe the impact of development activities on the vehicle by reference to, among other things, its investment strategy, development pipeline, stage of completion of developments, status of the sale of units or rental strategies. |
Annual | Interim |
ESG-POR 1.1 Requirement - Annual Portfolio Information Report against annual objectives and associated targets set for the vehicle as set out in ESG-ANN 1.1. ESG references: |
Annual |
Discuss and quantify significant capital expenditure programs either planned or being undertaken during the period for existing properties, such as renovations, extensions and improvements. SDDS references: |
Annual | Interim |
Quantify the amount of property development being undertaken during the period. Include details of the amount of properties completed and either transferred to investment properties or sold during the period. Include details of development costs, related commitments, and the method of accounting for property under development. SDDS references: |
Annual | Interim |
Describe and quantify the vehicle’s position in joint ventures and associate investments. Include details of, among other things, the methods of accounting for such positions, how they impact the overall financial and risk profile of the vehicle, and their business prospects. |
Annual | Interim |
Summarise and comment on returns from non-property investments such as positions in other vehicles, listed securities and other assets. | Annual | Interim |
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Risk management
Describe the principal risks faced by the vehicle. Describe and analyse the vehicle’s current exposure to such risks. Principal risks will cover, among others, areas such as:
Exposure to shareholder loans should be analysed separately from external loans. |
Annual |
Interim Describe material changes |
Describe the overall organisation of the risk management function and refer to key policies and procedures to monitor and mitigate exposures to key risks and uncertainties. |
Annual |
Interim Describe material changes |
Describe the current level of compliance with risk management policies by reference to current exposures. In addition, comment on specific breaches and remedial plans. |
Annual |
Interim Describe material changes |
In a tabular form, give details of the overall financing structure of the vehicle. Include information such as financing costs, security arrangements, recourse arrangements, maturity, and interest and loan amortisation terms. Refer to the financial statement disclosures as appropriate. SDDS references: |
Annual |
Interim Describe material changes |
Comment on the overall financing structure of the vehicle by reference to its overall strategy and future prospects. Such commentary should provide information on the status of material new debt arrangements, early debt reimbursements, and debt restructuring programs relevant to the period or anticipated in the foreseeable future. SDDS references: |
Annual |
Interim Describe material changes |
Describe and comment on the vehicle and SPV’s current key financing ratios, for example, interest service coverage ratio, property level loan to value, gearing ratio and the vehicle’s general level compliance with such ratios. SDDS references: |
Annual |
Interim Describe material changes |
Describe and comment on the use of derivative financial instruments and their impact on the vehicle’s performance. Disclose their key terms and fair values and their treatment in the financial statements and NAV. SDDS references: |
Annual |
Interim Describe material changes |
Describe and comment on the vehicle’s overall financing income and charges by reference to the vehicle’s financing structure, cash balances, changes in market conditions etc. SDDS references: |
Annual |
Interim Describe material changes |
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Other disclosure requirements
In exceptional circumstances, deviations by managers from property valuations as determined by external property valuers must be clearly explained and disclosed. If there is a disagreement between the manager and the property valuer on the market value parameters, these parameters must be clearly explained and disclosed. We expect these deviations and disagreements to occur only very rarely and if so, more in relation to opportunistic investments, where for example the manager and the external valuer have different views as to the likelihood of a particular event occurring (because, for example, the manager is in discussion with governmental bodies, potential buyers or tenants). Another example of deviation could be related to disagreement about value changes if there is a considerable time period between the actual date of external valuation and a later reporting date. Whatever the circumstances, appropriate internal procedures (including escalation measures) should be followed by the management in the event of valuation adjustments. |
Annual | Interim |
INREV NAV disclosure requirements Managers should make the following disclosures related to the NAV computation:
Explanatory notes to the reconciliation should describe key assumptions, methods used, and in particular:
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Annual |
Interim Describe material changes in methodologies and assumptions |
The constituent elements of the metric calculation should be disclosed in the annual report. | Annual |
A disclosure table should be presented that provides an analysis of all the components of the fees charged by the 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 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 |
The information in the following tables should be disclosed in the annual report. See table in inrev-guidelines">Fee and expense metrics module. |
Annual |