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. Questions? Contact me at bcase@nareit.com.

1. Net Income and Capital Appreciation from Listed U.S. Equity REITs, Institutionally
Owned Core Properties, and Core Funds
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.
• An initial investment of $10,000 in listed equity REITs at the end of 1977 would have grown into $880,738 by the end of
2017Q2 including $68,284 in income on the initial investment, $340,281 in income on reinvested dividends, $61,526 in
capital appreciation on the initial investment, and $400,648 in capital appreciation on reinvested dividends.
• The same initial investment would have grown into just $224,142 if invested in unlevered core properties and $184,702 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).
$10,000$100,000$1,000,000
19774
19804
19834
19864
19894
19924
19954
19984
20014
20044
20074
20104
20134
20164
Core Funds (ODCE)
Capital Appreciation on Reinvested
Income
Capital Appreciation on Initial Investment
Income on Reinvested Income
Total portfolio value: $184,702
Average annual net total return:
7.66%
$10,000$100,000$1,000,000
19774
19804
19834
19864
19894
19924
19954
19984
20014
20044
20074
20104
20134
20164
Listed U.S. Equity REITs
Capital Appreciation on Reinvested
Income
Capital Appreciation on Initial Investment
Income on Reinvested Income
Total portfolio value: $880,738
Average annual net total return:
12.00%
$10,000$100,000$1,000,000
19774
19804
19834
19864
19894
19924
19954
19984
20014
20044
20074
20104
20134
20164
Unlevered Core Properties (NPI)
Capital Appreciation on Reinvested
Income
Capital Appreciation on Initial Investment
Income on Reinvested Income
Total portfolio value: $224,142
Average annual net total return:
8.19%
0