The updated NCREIF PREA Reporting Standards require operating model updates across data, systems and controls.
Key takeaways
Expanded asset‑ and investment‑level reporting improves transparency and comparability.
Early adoption helps managers reduce reporting friction and build greater investor trust.
For more than 30 years, the NCREIF PREA Reporting Standards have served as the institutional benchmark for private real estate reporting. Co‑sponsored by the National Council of Real Estate Investment Fiduciaries (NCREIF) and the Pension Real Estate Association (PREA), the Reporting Standards were created by the industry, with input from investors, consultants, managers, auditors and service providers.
In a recent webinar hosted by RSM US LLP, industry leaders discussed why the Reporting Standards matter and how the new asset‑level reporting elements introduced in August 2025 are reshaping transparency expectations across closed‑end real estate funds. The session also highlighted growing global alignment with templates from the European Association for Investors in Non-Listed Real Estate Vehicles (INREV), the Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV) and the Institutional Limited Partners Association (ILPA)—underscoring the industry’s push toward standardization and comparability.
Why the Reporting Standards matter now
A live poll during the webinar revealed that 62% of attendees were only somewhat familiar with or had just heard of the Reporting Standards. As investors increasingly request standardized data and regulators heighten expectations around controls, many managers are discovering gaps in definitions, calculation methodologies and operating models.
The Reporting Standards provide:
- Unified definitions and calculation rules for comparisons
- Enhanced transparency in valuations, expenses, fees and performance
- Reduced bespoke reporting burdens through standardized reporting elements
- Strengthened governance, controls and audit readiness
- Global alignment supporting cross‑border institutional capital
The updated NCREIF PREA Reporting Standards advance transparency, consistency and comparability in real estate investment reporting and continue to set the benchmark for best practices amid rising regulatory and investor expectations.
William Andreoni, RSM Fund Services+ Co-Lead, RSM US LLP
5 insights you can apply immediately
The 2025 expansion of the Reporting Standards introduces recommended asset- and investment-level reporting to meet investor demand for deeper transparency. These fields—valuation inputs, leverage measures and operating metrics—are central to limited partner (LP) review, valuation committee decisions and audit processes. The goal isn’t just more data—it’s to make the data more standardized, consistent and traceable.
Key actions
- Prioritize the high-signal asset-level fields (discount rate, debt service coverage ratio, weighted average lease term, projected internal rate of returns, loan to value, etc.).
- Increase the frequency and completeness of FR.04 (Schedule of Investments) reporting for equity funds and separately managed accounts.
- Document clear data lineage: who owns each field, how it is calculated and where it originates.
- Validate definitions and methodologies against the 2025 updates and global standards.
- Embed asset-level data review into quarterly valuation and close cycles.
- Prioritize the high-signal asset-level fields (discount rate, debt service coverage ratio, weighted average lease term, projected internal rate of returns, loan to value, etc.).
Inconsistent internal rate of return (IRR) calculations have made comparisons across funds or managers difficult and unreliable. The Reporting Standards introduce an IRR hierarchy to address this issue. Levels 1a, 1b and 4 provide a consistent methodology for gross and net IRRs, and the Reporting Standards emphasize pairing IRR with paid-in capital multiples—TVPI, DPI and RVPI—for a complete performance picture .
Key actions
- Adopt the IRR hierarchy (Level 1a, 1b or 2 for gross IRR; Level 4 for net IRR after performance fees).
- Standardize IRR calculation policies across funds and strategies.
- Pair IRR with TVPI, DPI and RVPI in all LP reporting.
- Document methodology and ensure systems capture the correct cash flow groupings.
- Provide footnotes that explain leverage treatment, management fees and assumptions.
The total global expense ratio (TGER)—developed jointly by NCREIF, PREA, INREV and ANREV—is now the global benchmark for measuring total costs and fees for real estate vehicles. It harmonizes expense classification across regions and structures, giving investors a consistent metric over a rolling 12-month period.
Key actions
- Implement monthly expense capture for all relevant fee and cost categories.
- Align definitions across accounting, finance, operations and performance teams.
- Establish quarterly reviews to identify anomalies or categorization issues.
- Classify costs based on the nature of the service, not where the cost sits in the fund structure.
- Maintain clear documentation for auditors and LPs, including policies, exceptions and adjustments.
NCREIF, PREA, INREV and ANREV jointly maintain the Global Definitions Database (GDD)—a unified glossary to reduce differences across regions. With more cross-border capital and global investor reporting requirements, shared definitions help reduce inconsistencies.
Key actions
- Compare internal terminology with the GDD to identify misalignments.
- Update internal policies and definitions to match GDD terms.
- Train teams (valuation, reporting, performance, accounting) on GDD terminology.
- Apply shared definitions consistently across systems, templates and external reporting.
- Use GDD as a reference when onboarding new funds, strategies or regions.
Adopting the expanded Reporting Standards is not a checkbox exercise—it’s an operating model shift. Expanded asset-level reporting, standardized IRR methodology, TGER and global definitions require integration into processes, systems and controls.
Key actions
- Document and standardize methodologies required by the expanded Reporting Standards.
- Embed Reporting Standards validations into valuation cycles, close processes and performance reporting.
- Confirm that systems can store, calculate and report all fields required by the Reporting Standards.
- Establish evidence and audit trails for IRR levels, multiples, TGER calculations and assumptions.
- Train teams and create clear process documentation for auditors and LPs.
The bottom line
The NCREIF PREA Reporting Standards are the benchmark for transparency, comparability and governance in institutional real estate. As investor expectations evolve and regulatory scrutiny strengthens, early adopters will gain operational efficiency, reduce reporting burdens and elevate trust with stakeholders.
Jamie Kingsley, NCREIF PREA Reporting Standards director, and John Caruso, consultant with Rock Consulting Group, contributed to this article.
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