The NCREIF Timberland Index is a quarterly time series composite return measure of investment performance of a large pool of individual timber properties acquired in the private market for investment purposes only.
All properties in the Timberland Index have been acquired, at least in part, on behalf of tax-exempt institutional investors - the great majority being pension funds. As such, all properties are held in a fiduciary environment.
The table below represents total returns for the NCREIF Timberland Index.
Timberland properties only
The composition of the Timberland Index can change over time. The number of properties changes as Data Contributing Members buy and sell properties and new Data Contributing Members are added. Properties exit the Timberland Index when assets are sold or otherwise leave the database. All historical data remains in the database and in the Index. The Index represents investment returns from a single class of investor. As such, the Timberland Index may not be representative of the timberland investment market as a whole.
The Timberland Index is reported on a national level, and is also subdivided into three geographic regions within the United States: the Pacific Northwest, South and Northeast. For aggregated return data to be reported for a region in a particular quarter, properties must be reported therein by at least three data contributors, for masking purposes. Other regional indices may develop if the reported data meets this criteria.
Once a property has met all the criteria to be included in the Timberland Index it is only removed if:
In all cases, the history of the property remains in the Timberland Index.
Each quarter, the Data Contributing Members submit a market value for each Timberland qualifying property. The value the Data Contributor submits is the value they believe is the property's fair market value as of that particular reporting period - i.e., the end of each calendar quarter.
A change in value from one quarter to another can be for one of several reasons: