ABSTRACT
Performance measurement and monitoring, an essential element of property investment is the availability of reliable information about the performance of each asset, whether held singly or in a portfolio. Performance refers to the ability of the portfolio to achieve stated objectives. Performance measurement in isolation is insufficient; there is a need for both performance measurement and performance analysis – i.e. identifying the key factors that are impacting on that performance. When analysing the performance of a property investment, details of cash flows and capital value are required. Prior to the 1950s portfolio performance, appraisal was focused on comparing the returns from equities and gilt-edged securities. Performance appraisal compares expectation with achievement. There are two aspects of market information that are relevant to performance measurement: the market for real estate generally and the market for a specific property. When considering the value of the portfolio as a whole, there are specific factors likely to impact on performance.
