– performance measurement and analysis for portfolio and asset management
KTI Index is a tool for property investors to measure and benchmark the returns of property investment portfolios. The KTI Index measures the total return of directly held property investments in Finland and it divides the total return into capital growth and income return components. In 2019 the average total return of the Finnish real estate market was 8.8%.
KTI Index can be used for:
- analysing and benchmarking portfolio returns
- defining investment strategies for real estate investments: allocations, instrument and sector choices, investments, realisations etc.
- property valuations and analysis of the parameters affecting the value
- risk analysis and risk management
- real estate market analysis
- investor communication
- international comparison: KTI Index is consistent with other country indices calculated by MSCI (MSCI Nordic Countries Index, EUR)
KTI Index is based on:
- properties of 26 institutional investors, property investment companies and funds
- total value €27.5 billion
- coverage about 36% of the total property investment market in Finland
- 2,200 properties
- includes all major property sectors and major cities, about 100 submarkets in total
- time series since 1998
KTI Index benchmark service includes a confidential benchmark report, an analysis session and all market figures calculated from the database. The data can also be downloaded and analysed easily through the KTI Online service (in Finnish).
KTI Rental benchmarking
KTI Rental benchmarking is a tool for investors and asset managers for lease management and development. KTI Rental benchmarking provides information for analysing and comparing submarket-levelled rents, contract terms, occupation rates and tenant turnover. The service is produced for office, retail, industrial and residential premises. Rent levels are calculated separately for prevailing agreements and for new agreements which have started during the previous 6 months.
Rental benchmarking can be used for:
- defining, measuring and monitoring the rent levels
- defining and optimising lease terms
- improving the cash flow
- analysing the rental market development
- defining a strategy for leasing
- making investment, disinvestment and allocation decisions
- defining market values for properties
Commercial rental benchmarking is based on:
- cross cut of 29,000 commercial lease agreements as of September 1, 2019
- lease agreements situated in 34 localities and 600 submarkets
- information of rent levels and occupation rates based on property use, location, size, age and lease commencement
- bi-annual update of new lease agreements (started during previous 6 months)
- office rental index for monitoring office rental development, base year 1992
Residential rental benchmarking is based on:
- cross cut of 91,000 residential rent agreements as of March 1, 2020 (professional, non-subsidised market)
- bi-annual update of new lease agreements (started during previous 6 months)
- residential lease agreements situated in 33 localities
- information of rent levels and occupation rates based on apartment type, location, construction year, lease commencement and finance type (subsidised/non-subsidised)
- rental indices for monitoring residential rental development, base year 1992
KTI Rental benchmarking service includes a confidential benchmark reporting, an analysis session and all market figures calculated from the database. Data is also available in the dynamic KTI Online service which offers various types of search parameters.
KTI Operational cost benchmarking
Operational cost benchmarking is a property investor’s and manager’s tool for monitoring and optimising operational costs. In 2019 the realised average operational cost for offices was 4.70 €/net floor area/month.
Operational cost benchmarking can be used for:
- optimising resources and costs used for property maintenance
- analysing factors affecting costs
- scanning for costs that differ from the market level
- tracking cost development for own properties and market
- tracking and comparing energy and water consumption
- managing service providers and defining service contract terms
- rewarding personnel and partners
Operational cost benchmarking is based on:
- realised operational costs and consumption information of 1,200 residential properties and 500 commercial properties (office, retail, industrial and warehouse)
- classified data based on location, size and construction year
- time series since 2000
The information above is based on the data of spring 2020.
KTI produces annual indices for offices and apartment houses, used for tracking realised operation costs.
The operation costs are divided into 13 cost categories according to the Finnish Accounting Ordinance (30.12.1997/1339) as follows: 1. Administration, 2. Operations and maintenance, 3. Outdoor maintenance (Roadways, parking and grounds), 4. Cleaning, 5. Heating, 6. Water and wastewater, 7. Electricity, 8. Waste management, 9. Insurance, 10. Rent (ground rent, if applicable), 11. Property tax, 12. Other maintenance costs, 13. Repairs + capital improvements.
KTI Operational cost benchmarking service includes a confidential benchmark report, an analysis session and all market figures calculated from the database. The data can also be downloaded and analysed easily through the KTI Online service (in Finnish).
KTI Customer satisfaction benchmarking
Customer satisfaction benchmarking enables measurement and benchmark of the satisfaction and customer experience of the tenant. The service measures tenant satisfaction of the leased premises, the landlord (or landlord’s agent) and the services included in the tenancy.
Customer satisfaction benchmarking can be used for:
- managing and improving the customer relationship and customer loyalty
- improving the profitability of leasing
- managing and rewarding service providers
- rewarding staff
- identifying key development areas in the facilities, services or customer interface
- internal and external communication, customer interaction, strengthening corporate image
Commercial property customer satisfaction benchmarking is based on:
- data from 19 landlords
- 2,457 phone interviews (the average response rate was 72%)
- feedback received from 1,832 office, 484 retail, 90 industrial and 51 mixed space premises
Residential property customer satisfaction benchmarking is based on:
- data from 4 landlords
- feedback from 3,930 residential premises
- feedback collected in questionnaire form or by online survey
The information above is based on the number of participants and data of autumn 2018.
KTI Customer Satisfaction Benchmarking Service includes a company report, a confidential benchmarking report and an analysis meeting. The data can also be downloaded and analysed easily through the KTI Online service (in Finnish).
KTI Corporate Responsibility (ESG) benchmarking
Corporate responsibility benchmarking can be used for:
- performance evaluation, development and analysis through organization’s own key figures and benchmarking
- assessing the social significance and responsibility of the entire property industry
- setting targets for development of management systems, key figures and reporting, among other things
- analyzing KPIs for economic, social, governance and environmental responsibility
- external communication, self-monitoring and reporting, and operational development
- in addition, the organization will gain visibility in the “Sustainable property business” report
Corporate responsibility benchmarking is based on:
- A Finnish KTI-RAKLI Corporate Responsibility Reporting Recommendation for property investors, which takes into account the specificities and needs of the Finnish property market and is in line with international systems (for example GRI, INREV Sustainability Reporting Recommendations, EPRA Sustainability BPR, GRESB).
- The Recommendation defines the perspectives, contents and calculation formulas for key metrics and figures, allowing benchmarking between different players.
- The key perspectives are:
- property business cash flow, tax footprint, occupancy rate, turnover
- customers, personnel, employability, social activities
- energy, carbon emissions, water, waste.
KTI Shopping centre benchmarking
Shopping centre benchmarking supports shopping centre management and investment. The service produces indices of visitors and sales on a monthly basis. The service includes also rental analysis for shopping centres, OCR (Occupancy Cost Ratio) figures, operational costs and energy consumption. The service has been developed together with the Finnish Council of Shopping Centers and the players in real estate business.
Shopping centre benchmarking can be used for:
- developing and managing shopping centre business strategy
- monitoring and benchmarking the visitors, sales and occupation rate of the shopping centre
- managing and developing the rental operation
- analysing the rental figures and OCR (ratio of annual rent to sales receipts) per business sector
- reviewing and setting targets for the annual income, operational costs and energy consumption
Shopping centre benchmarking is based on:
- information on 40 shopping centres, nearly 80% of the total area of all Finnish shopping centres
- regional classifications based on the size and type of the shopping centre. Classifications enable comparing the centre to a proper peer group
- time series since 2013 (visitors and sales since 2011)
tel. +358 400 959 634