The National Council of Real Estate Investment Fiduciaries (NCREIF) is the trade association that basically consists of tax-exempt real estate typically held by pension funds. NCREIF generates several total property returns indices. This highly transparent dataset included 7,353 properties with an estimated market value of $505.3 billion as of the end of Q2 2016. These are up from $471.7 billion across 7,225 properties as of the end of 2015, a gain of 7.12 percent and 1.74 percent, respectively. NCREIF reports the data for five separate property types plus an All Properties return including:
Returns are calculated quarterly and include both the net-cash flow from the property and the change in the property value. Specifically, total return is the net operating income from the property, less property management fees, plus the change in value. The annual returns referenced in this blog are the simple sum of the prior four quarters.
The following table contains the latest Industrial Quarterly Return Indices for the commercial industrial properties held in tax exempt investments.
These excellent returns are not always recurring, as shown in the following graph detailing the return for the trailing 12-months quarterly. As they always say, past performance does not guaranty future returns. While the latest TTM return of 12.72 percent is greater than 8.93 percent average since 2001, it has declined three consecutive quarters, as shown in the following graph.
To view or download the data click http://www.ncreif.org/property-index-returns.aspx?region=I