- June 1, 2014: Vol. 26, Number 6

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Q1 returns sluggish, NCREIF reports

by Mike Consol


There was no fanfare when NCREIF released the latest numbers for its key Open-end Diversified Core Equity Index (ODCE). And why should there have been? Total returns (before fees) for first quarter 2014 were a paltry 2.52 percent — the lowest total return since fourth quarter 2012. That compares unfavorably even with the muted returns of 2.68 percent during the same quarter last year, and returns of 3.17 percent during fourth quarter 2013.

The NCREIF Property Index was not exactly burning a hole in investors’ pockets either. The NPI produced a total return of 2.74 percent during the first quarter.

ODCE properties, a subset of NPI properties, have outperformed non-ODCE properties in the NPI during the past several quarters, according to NCREIF. The first quarter saw a change in that pattern, with most property types in the ODCE index underperforming relative to non-ODCE properties.

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