Q3 Performance Summary
SKRADD-NTRE: +0.3% | SKRADD-NTRED: +0.4%
Both the NT REIT Equity Index (NTRE) and the NT Diversified REIT Equity Index (NTRED) posted modest gains in Q3.
NTRED outperformed slightly, helped by the exclusion of a poorly performing sector-specific REIT that dragged on NTRE returns.
As of September 30, the largest sector allocation difference between the indices was in the industrial sector, where NTRE held a 6.6% higher weighting than NTRED.
Historically, applying “caps” to these indices has negatively impacted returns, possibly reflecting a size premium in non-traded REIT performance. However, in Q3, both capped indices outperformed their uncapped versions, defying the typical trend.
Publicly-Traded REITs: +16.1%
Listed REITs saw one of their strongest quarters in recent history, buoyed by the Fed’s 50-basis-point rate cut, which provided a tailwind to this rate-sensitive sector.
Core Real Estate Funds: +0.3%
The NFI-ODCE Index recorded a gross return of 0.3% for Q3, with income returns of 1.1% partially offset by a -0.8% appreciation decline.
Property-Level Returns: +0.8%
The NPI Index delivered a 0.8% return in Q3, comprised of a 1.2% income return and a -0.4% appreciation return.
Altidar High Return - Cohen & Steers Income Opportunities REIT: +3.2%
Altidar Low Return - Cantor Fitzgerald Income Trust: -4.3%
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For a more in-depth analysis, download the complete index update below. This report offers a historical perspective on the index returns, real estate benchmark comparisons, and recent performance data for the non-traded equity REITs featured on the Altidar platform.