In first quarter 2023, the aggregate market value of the properties in the NCREIF Property Index (NPI) declined for the third consecutive quarter, and the returns were negative for the second consecutive quarter.

The Market Value Index declined by 2.6 percent during the first quarter, and the total return for the quarter was –1.81 percent. Although the return was negative, it was less negative than the –3.49 percent return during fourth quarter 2022, and the decline in value was less than it was in the fourth quarter.

The quarterly NPI return consisted of 1.01 percent from income and –2.82 percent from negative property appreciation. Appreciation is after the deduction of capital expenditures. The –1.81 percent total return is the unleveraged return for “operating properties” held by institutional investors throughout the United States. As of quarter-end, there were 4,717 properties with leverage, and the weighted average loan-to-value ratio was 43 percent.