BCI’s private real estate portfolio declines for third straight year

June 30, 2026 - 04:26

The British Columbia Investment Management Corporation, known as BCI, has reported that its private real estate holdings have declined in value for the third consecutive year. This sector, which makes up about 20% of the Canadian pension fund manager's total portfolio, has become its only asset class to post negative returns since 2023.

According to BCI's latest financial results, the private real estate portfolio saw a net loss of 3.2% for the fiscal year ending March 31. This follows a 4.5% drop the previous year and a smaller decline in 2022. The persistent downturn reflects broader challenges in commercial real estate markets, including rising interest rates, lower property valuations, and shifting demand for office space.

BCI manages over $200 billion in assets for public sector clients in British Columbia. While its overall portfolio returned a positive 5.8% for the year, the real estate segment dragged down performance. The pension fund has been adjusting its strategy, focusing on higher-quality assets and reducing exposure to struggling office properties. Officials noted that the real estate market remains uncertain, with no immediate signs of a rebound. Despite the losses, BCI said the long-term outlook for the sector remains stable, as it continues to generate steady income from leases and other operations.