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NCREIF: Property Returns Remain 'Modest'

Total returns for the NCREIF Property Index have been fairly consistent over the past five quarters, although annual returns are below the five-year average.

By Paul Bubny | Updated on October 26, 2017

Aon Center in Chicago Headquartered at Chicago’s Aon Center, NCREIF says occupancies have been fairly steady, although varying by property type.

CHICAGO—Returns for the 7,165 income-producing properties in the National Council of Real Estate Investment Fiduciaries’ universe were off slightly in the third quarter, continuing a trend seen over the past several months. The NCREIF Property Index (NPI) registered a total return of 1.7% for Q3, off from 1.75% in the previous quarter, 1.77% in the year-ago period and 3.09% two years ago.

In terms of the longer-term outlook, NCREIF says the NPI total return remains “modest” and has been “relatively stable,” ranging between 1.55% and 1.77% over the past five quarters. Q3′s total return consisted of a 1.14% income return and 0.56% appreciation. Over the past five quarters, both components of the total return have been relatively stable, with the quarterly income return ranging from 1.14% to 1.16% and appreciation in the 0.4%-to-0.6% range.

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