The PREA/IPD US Quarterly Property Fund Index (Core Open-End Funds) reported a gross fund-level (leveraged) total return of 2.6 per cent for the first quarter of 2014.
Gross fund-level (leveraged) total returns for the one, three and five years ending 31 March 2014 were 13.7 per cent, 13.4 per cent pa and 3.6 per cent pa respectively.
Direct unleveraged real estate total return for the first quarter of 2014 was 2.4 per cent. For the one, three and five years ending 31 March 2014, direct unleveraged real estate generated total returns of 11.6 per cent, 11.5 per cent pa and 8.0 per cent pa.
During the first quarter of 2014, the index underperformed property equities at 8.2 per cent (MSCI US) and bonds at 0.9 per cent (JP Morgan US Government Bond Index, 7-10 years). It outperformed equities at 1.8 per cent (MSCI US).
The PREA/IPD US Quarterly Property Fund Index (Core Open End Funds) measures real estate investment performance for core open-end, commingled funds. It comprises 21 funds with 2,390 assets and USD143.9 billion in gross asset value (GAV), as of 31 March 2014.