The real estate market back on track following some tough times, according to the Canada Pension Plan Investment Board’s CEO.

John Graham told The Globe and Mail that the property sector has “kind of caught its footing,” after the office and retail sectors, particularly, experienced troubles for an extended period.

But Graham still expects investment markets to face difficulties this year.

“It’s like being on a rollercoaster,” he told the Globe. “We’ve been spun around, upside down, and it seems like we’re back where we started.

“But we’re still strapped in, and I think everyone expects that there’s going to be a few more rounds of this as no one really has a great sense of where things are going to land.”

Graham’s outlook follows the release of CPPIB’s financial results showing a 9.3% return for the fiscal year ending March 31. The fund’s total assets rose to $714.4-billion from $632.3-billion a year earlier, bolstered by $59.8-billion in investment income and around $22-billion in new contributions from Canada Pension Plan members.

U.S. investments remain a key part of CPPIB’s strategy, with their share of the fund’s total portfolio increasing to 47%, up from 42% the year before. Graham attributed the shift to investment gains and foreign-currency effects.

“We’re comfortable with the assets we have in the country,” he told the Globe.

While Graham acknowledged that the uncertainty is putting downward pressure on global growth, he expects CPPIB’s resilient approach to guide the fund through the volatility.

“We don’t try to oversteer it,” he told the Globe. “Even in times when there is uncertainty, you can still find good investments.”

CPPIB manages the Canada Pension Plan’s funds on behalf of roughly 22 million Canadians, with nearly 60% of its assets invested in North America and the remainder spread across Europe, Asia, and Latin America.

Join Canada’s leading CRE owners, investors, developers, brokers, financiers, and more at Connect Canada on May 28 at Malaparte in Toronto. Register now to catch forecasts from Canadian CRE leaders on market challenges and opportunities, insights into international investing with evolving market dynamics, the outlook for multifamily housing, and much more. www.ConnectCanada2025.com

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