The PREA/IPD US Quarterly Property Fund Index reported a gross fund-level total return of 3.0 per cent for the second quarter of 2014.
Gross fund-level total returns for the one, three, and five years ending 30 June 2014 were 13.2 per cent, 13.0 per cent and 10.3 per cent, respectively.
The direct unleveraged real estate total return for the second quarter of 2014 was 2.7 per cent.
During the second quarter, the index underperformed property equities at seven per cent (MSCI US) and bonds at 2.4 per cent (J.P. Morgan US Government Bond Index, 7-10 years). It underperformed equities at 5.2 per cent (MSCI US).
Ken Greguski, executive director and head of US client service, IPD, says: “The US continues to display sold capital growth and strong absolute performance.”