Core property funds continue to perform well

NCREIF has released the third quarter 2013 results for its Open-end Diversified Core Index, and while the quarter didn’t quite live up to the strong performance of second quarter 2013, the positive numbers have continued. The total return before fees for the index was 3.56 percent, 79 basis points higher than a year ago. The return was split between 1.31 percent from income and 2.25 percent from appreciation. The total return this quarter was the second best since 2011, behind only the previous quarter’s 3.86 percent return. Second quarter 2011 saw a return of 4.62 percent.

The ODCE, which tracks core property fund returns, also performed significantly better than the NCREIF Property Index, which saw a return of only 2.59 percent. The 97 basis point difference between the two indices is the largest gap in the past three years after the second quarter’s performance gap of 99 basis points. The sector that saw the bi