Real Estate Income and Capital Appreciation

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Compares income, capital appreciation, and total returns of commercial property investments through listed equity REITs, unlevered core property holdings, and core private equity real estate …

Compares income, capital appreciation, and total returns of commercial property investments through listed equity REITs, unlevered core property holdings, and core private equity real estate funds.
Please contact me at bcase@nareit.com for details.

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  • 1. Net Income and Capital Appreciation from Listed U.S. Equity REITs, Institutionally Owned Core Properties, and Core Funds $10,000 $100,000 $1,000,000 Core Funds (ODCE) Capital Appreciation on Initial Investment Income on Reinvested Income Income on Initial Investment Initial Investment Total portfolio value: $141,657 Average annual net total return: 7.48% 19774 19804 19834 19864 19894 19924 19954 19984 20014 20044 20074 20104 20134 $10,000 $100,000 $1,000,000 Listed U.S. Equity REITs Capital Appreciation on Initial Investment Income on Reinvested Income Income on Initial Investment Initial Investment Total portfolio value: $680,149 Average annual net total return: 12.17% 19774 19804 19834 19864 19894 19924 19954 19984 20014 20044 20074 20104 20134 $10,000 $100,000 $1,000,000 Unlevered Core Properties (NPI) Capital Appreciation on Initial Investment Income on Reinvested Income Income on Initial Investment Initial Investment Total portfolio value: $176,740 Average annual net total return: 8.13% 19774 19804 19834 19864 19894 19924 19954 19984 20014 20044 20074 20104 20134 • An initial investment of $10,000 in listed equity REITs at the end of 1977 would have grown into $680,149 by the end of 2014Q3 including $62,418 in income on the initial investment, $277,761 in income on reinvested dividends, $49,902 in capital appreciation on the initial investment, and $280,068 in capital appreciation on reinvested dividends. • The same initial investment would have grown into just $176,740 if invested in unlevered core properties and $141,657 if invested in core funds, assuming that income could be reinvested immediately. • Index data assumes an actively managed investment in unlevered core properties or core funds, but an unmanaged passive investment in listed equity REITs (though with fees characteristic of an actively managed domestic REIT portfolio). Source: NAREIT® analysis of returns data from FTSE NAREIT All Equity REITs Index, NCREIF Property Index (NPI), and NCREIF Open-End Diversified Core Equity Fund Index (ODCE). Values are shown on a logarithmic scale. Analysis does not control for differences in leverage, property type or geographic mix, etc. 0