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NCREIF: Core Funds Enter Positive Territory for First Time Since 2022
Returns in two of the quarterly indices from the National Council of Real Estate Investment Fiduciaries
(NCREIF) turned positive in 2024’s third quarter for the first time since 2022. The total return in the NCREIF Fund Index – Open-end Diversified Core Equity (NFI-ODCE) was 0.25%, up from -0.45% in the
previous quarter and up from -1.90% a year ago, while returns for the NCREIF Property Index (NPI) came in at 0.83% after seven quarters of negative returns.
For the NFI-ODCE, the income return was 1.04%, slightly above 1.02% in the previous quarter, and up from 0.91% in Q3 2023. The appreciation return was -0.79% for the quarter, above the prior quarter’s -1.46% and up from -2.81% a year ago. The average quarterly income and appreciation returns are 1.65% and 0.34%, respectively, since the NFI-ODCE’s inception of March 31, 1978.
For the NPI–at just under $900 billion of assets, more than three times the size of the NFI-ODCE universe–all property types but one were able to produce positive returns in Q3. That exception was office, which dragged down overall returns for the NPI with a negative 0.89 return. Hotels continued to have the highest return (2.67%), followed by retail (1.86%) and self-storage (1.55%).
- ◦Sale/Acquisition
