What do property swaps link returns to?

Property swaps typically link returns directly to the performance of specific properties or groups of properties. This financial arrangement allows parties to exchange cash flows based on the income generated by these properties, effectively aligning their financial interests with the real estate assets involved.

When two parties engage in a property swap, they may agree to track the rental income or capital appreciation of designated real estate assets. This means that the returns one party receives will depend on how well those properties perform economically, whether through increases in rental income or appreciation of property values.

The other options do not accurately capture the essence of property swaps. While financial instruments, stock markets, and fixed asset returns can be related to various investment strategies, they do not reflect the specific focus on the performance of individual or groups of properties inherent in property swaps. This specialization is what makes the relationship in option B correct, as it highlights the direct dependency on the physical real estate being swapped.