CHICAGO—Consistent with the National Council of Real Estate Investment Fiduciaries' fourth-quarter NCREIF Property Index, released this past Friday, the council's latest core real estate fund index has displayed progressive improvement since midyear 2017. Q4 numbers for the NCREIF Fund Index – Open‐end Diversified Core Equity (NFI-ODCE) showed total returns of 2.07%, compared to 1.87% in Q3 and 1.7% in Q2. However, it's down by four basis points compared to a year ago.
The income return for the quarter was 1.06%, down .01% from the previous quarter. Quarterly appreciation averaged 0.78% across '17, with strong 1.01% appreciation in Q4. In comparison, the quarterly average appreciation in 2016 and 2015 was 1.02% and 2.38%, respectively.
For the trailing year, the annual NFI-ODCE total return gross of fees was 7.62%, down from 8.77% for the year that ended Q4 '16 and below the annualized return of 8.72% since inception. The annual total return was comprised of a 4.35% income return and 3.15% appreciation.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.