Caisse de d茅p么t et placement du Quebec鈥檚 (CDPQ) real estate portfolio, particularly in the US office sector, continued to weigh on the firm鈥檚 overall performance in 2024, while its infrastructure portfolio remained a strong performer during the period.
CDPQ鈥檚 C$41.87bn (鈧�27.9bn) real estate portfolio recorded a one-year return of -10.8% and an annualised five-year return of -2.2%, significantly below its index鈥檚 1% and 0.7%, respectively. This underperformance was attributed to a concentration in US offices and an initial overexposure to shopping centres.
However, the exposure to logistics, which has increased over five years, was profitable during the period, the Canadian investor said.
CDPQ held the number six position in the 91传媒在线 Top 150 Real Estate Investors 2024 rankings.
It said its C$64bn infrastructure portfolio delivered a 9.5% return in 2024, a performance driven by port and energy assets and high current yield. Its benchmark index recorded a return of 15%, which was heavily influenced by public energy and electricity stocks, particularly those boosted by AI-related demand.
Over five years, the infrastructure portfolio recorded a 10% annualised return, surpassing the index鈥檚 5.4%.
CDPQ ranked second in the 91传媒在线 Top 100 Infrastructure Investors 2024 list.
For the year ending 31 December 2024, the C$473bn Canadian fund reported a 9.4% weighted average return on depositors鈥� funds, falling short of its benchmark portfolio鈥檚 11.8% return. However, its five-year annualised return of 6.2% outperformed the benchmark portfolio鈥檚 5.9% return.
Charles Emond, president and CEO of CDPQ, said: 鈥淭he 2024 market environment was characterised by the vitality of the US economy, rising long-term bond yields and a historic level of concentration in the main stock indices, boosted by technology companies.
鈥淒uring this period, our performance was driven by our equity market, private equity and infrastructure activities, but was affected by persistent headwinds in real estate, particularly in the US office sector.鈥�
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