Key Takeaways
- • Los Angeles Fire and Police Pensions (LAFPP) has agreed to extend Cohen & Steers Capital Management's US REIT mandate for three years, with the new contract beginning in 2027 after the current mandate expires on 31 December 2026, according to a board meeting document reported by IPE Real Assets.
- • Cohen & Steers currently manages $543.5m (€484.8m) for the pension fund, and has delivered an annualised net return of 7.78% since the relationship began in November 2017, outperforming the FTSE Nareit All Equity Index by 187 basis points.
- • The mandate has lagged recently, underperforming year-to-date and over one year by 152 and 157 basis points respectively, which LAFPP attributed primarily to an overweight in telecommunications and stock selection in data centres, shopping centres and telecoms.
- • LAFPP also plans to fully liquidate a $227m US REIT portfolio managed by Principal Real Estate Investors in November, with proceeds moved to the pension's cash account to fund upcoming private real estate commitments.
Summary
Los Angeles Fire and Police Pensions (LAFPP) has agreed to extend Cohen & Steers Capital Management's mandate as its US real estate investment trust (REIT) manager for an additional three years, according to IPE Real Assets. The pension fund disclosed the decision in a board meeting document. The new contract will start in 2027, following the expiration of the current mandate on 31 December 2026.
Cohen & Steers currently manages $543.5m (€484.8m) on behalf of LAFPP. Since the relationship began in November 2017, the firm has delivered an annualised net return of 7.78% for the pension, outperforming the FTSE Nareit All Equity Index by 187 basis points. Performance has weakened more recently, however. The portfolio trailed the benchmark by 152 basis points year-to-date and by 157 basis points over one year, per the board document.
LAFPP attributed the recent shortfall primarily to an overweight position in the telecommunications sector, alongside stock selection within data centres, shopping centres and telecommunications. The extension comes despite that underperformance, reflecting the pension's longer-term results under the mandate.
Separately, LAFPP plans to complete the full liquidation of a $227m US REIT portfolio managed by Principal Real Estate Investors in November. Proceeds will be transferred to the pension fund's cash account to fund upcoming private real estate commitments. Together, the two moves reshape the pension's listed real estate allocation while it directs capital toward private real estate.
Cohen & Steers currently manages $543.5m (€484.8m) on behalf of LAFPP. Since the relationship began in November 2017, the firm has delivered an annualised net return of 7.78% for the pension, outperforming the FTSE Nareit All Equity Index by 187 basis points. Performance has weakened more recently, however. The portfolio trailed the benchmark by 152 basis points year-to-date and by 157 basis points over one year, per the board document.
LAFPP attributed the recent shortfall primarily to an overweight position in the telecommunications sector, alongside stock selection within data centres, shopping centres and telecommunications. The extension comes despite that underperformance, reflecting the pension's longer-term results under the mandate.
Separately, LAFPP plans to complete the full liquidation of a $227m US REIT portfolio managed by Principal Real Estate Investors in November. Proceeds will be transferred to the pension fund's cash account to fund upcoming private real estate commitments. Together, the two moves reshape the pension's listed real estate allocation while it directs capital toward private real estate.
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