The aggregate market value of the properties in the NCREIF Property Index declined for the sixth consecutive quarter, and the returns were negative for the fifth consecutive quarter. The market value index declined by 3.74 percent during the fourth quarter and 14.39 percent since the peak in the second quarter 2022.

The total return for the quarter was –3.02 percent and the unleveraged return for the past four quarters was –7.95 percent.

The –3.02 percent total quarterly return consisted of 1.11 percent from income and –4.13 percent from negative property appreciation. Appreciation is after the deduction of capital expenditures.

The –3.02 percent return is the unleveraged return for “operating properties” held by institutional investors throughout the United States. As of quarter-end, there were 4,673 properties with leverage, and the weighted average loan-to-value ratio was 47 percent. Lower unleveraged returns coupled with higher interest rates m