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NFI-ODCE Final Released

Core Real Estate Funds Record Highest One-Year Return Since Inception

CHICAGO, IL, April 29, 2022 – The National Council of Real Estate Investment Fiduciaries (NCREIF) released first quarter 2022 results for the NCREIF Fund Index – Open‐end Diversified Core Equity (NFI-ODCE). The NFI-ODCE consists of 27 funds totaling $337.9 billion of gross real estate assets and $285.6 billion of net real estate assets.

NFI-ODCE total return gross of fees for the first quarter 2022 was 7.37% (the second highest since inception of the Index in 1978), down from 7.97% in the previous quarter, and from 2.11% a year ago in first quarter 2021. The income return was 0.93%, down slightly from 0.97% in the previous quarter, and from 0.98% in first quarter 2021. The appreciation return was 6.44% for the quarter, below the previous quarter’s 6.99%, and up significantly from 2021 first quarter’s 1.12%.

Quarterly NFI-ODCE Gross Return Trends

For the one-year ended March 31, 2022, the NFI-ODCE total return gross of fees was 28.47% (the highest since inception), up from 22.17% for the one-year ended December 31, 2021, and well above the three-year annualized return of 11.29%. The one-year total return ended March 31, 2022, was comprised of 3.95% income (the fourth lowest since inception) and a 23.80% appreciation return (the highest since inception).

NFI-ODCE returns measure fund-level performance and therefore can reflect leverage and other investments beyond properties, including cash balances. Leverage is conservative among these funds given their core strategies, ranging from 15% to 34% over the quarterly series history beginning in 2000. NFI-ODCE leverage is above the 21.8% average since 2000, registering 21.0% as of current quarter-end, down from the previous quarter’s 22.1%.

NFI-ODCE Leverage Trends (% of total assets)

Quarterly investor net cash flows (investor contributions less distributions and redemptions) were positive $878.6 million, compared to last quarter’s positive $469.9 million, and first quarter 2021’s negative $2.1 billion. For the one-year ended March 31, 2022, contributions were $24.0 billion, and distributions and redemptions were $24.7 billion, resulting in an annual investor net cash flow of negative $0.7 billion.

NFI-ODCE Investor Cash Flow Trends (4Q Rolling Total, Billions)


Additional details from the NFI-ODCE release are in the attached Snapshot Report.

About the NFI-ODCE Index

The NFI‐ODCE Index is a capitalization‐weighted, gross of fees, time‐weighted return index with an inception date of January 1, 1978. Published reports may also contain equal‐weighted and net of fees information. Open‐end Funds are generally defined as infinite‐life vehicles consisting of multiple investors who have the ability to enter or exit the fund on a periodic basis, subject to contribution and/or redemption requests, thereby providing a degree of potential investment liquidity. The term Diversified Core Equity style typically reflects lower risk investment strategies utilizing low leverage and generally represented by equity ownership positions in stable US operating properties.

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Snapshot