The quarterly total return of the NCREIF Property Index (NPI) was 0.57 percent for the third quarter, which is down from 3.24 percent in the second quarter. The quarterly return consisted of 0.93 percent from income and –0.37 percent from appreciation — the first negative appreciation return since second quarter 2020. Appreciation is after the deduction of capital expenditures. Market values before considering capital expenditures decreased by 0.09 percent — the first decline in the index since third quarter 2020. The decline was due in part to a significant increase in the number of properties that had their values written down this quarter versus those that were written up. More than half the properties in the index were written down, which also hasn’t happened since third quarter 2020.

The 0.57 percent return is the unleveraged return for what is primarily “core” real estate held by institutional investors throughout the United States. As of quarter-end, there