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Real Estate Income and Capital Appreciation
 

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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    Real Estate Income and Capital Appreciation Real Estate Income and Capital Appreciation Presentation Transcript

    • Income on Reinvested Income Total portfolio value: $629,901 Average annual net total return: 12.20% Total portfolio value: $130,959 Average annual net total return: 7.41% 19774 19804 19834 19864 19894 19924 19954 19984 20014 20044 20074 20104 20134 $100,000 $100,000 Capital Appreciation on Reinvested Income Capital Appreciation on Initial Investment Income on Reinvested Income Total portfolio value: $164,067 Average annual net total return: 8.08% $10,000 19774 19804 19834 19864 19894 19924 19954 19984 20014 20044 20074 20104 20134 $100,000 • Core Funds (ODCE) 19774 19804 19834 19864 19894 19924 19954 19984 20014 20044 20074 20104 20134 Income on Reinvested Income $10,000 Capital Appreciation on Reinvested Income Capital Appreciation on Initial Investment $1,000,000 Capital Appreciation on Reinvested Income Capital Appreciation on Initial Investment Unlevered Core Properties (NPI) $10,000 Listed Equity REITs $1,000,000 $1,000,000 Listed Equity REITs Have Provided Much Greater Net Income and Capital Appreciation than Institutionally Owned Core Properties and Core Funds An initial investment of $10,000 in listed equity REITs at the end of 1977 would have grown into $629,901 by the end of 2013 including $60,611 in income on the initial investment, $259,434 in income on reinvested dividends, $47,207 in capital appreciation on the initial investment, and $252,649 in capital appreciation on reinvested dividends. • The same initial investment would have grown into just $164,067 if invested in unlevered core properties and $130,959 if invested in core funds, even 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). 0 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.