Generally real estate is considered a long term investment, but performance monitoring is done on the short-term by comparing with a yearly benchmarking; the ROZ/IPD index in the case of the Dutch market. An essential deficiency in this approach is that the corresponding risk profile of the investment is not taken into consideration. Investment theory is based on the pairing of return to risk. This paper describes a new method for the performance analyses of a real estate investment portfolio with the scope on both components; risk and return. The downside deviation is used with the corresponding ratioís and MAR target return, which are considered important for the investor. Furthermore, a new ratio is introduced namely the Performance Potential ratio, which is important for the involved management.