Non-Traded REIT Indices - Q4 2024
- jackkearney54
- 6 days ago
- 2 min read
Performance Summary
SKRADD-NTRE: +0.6% | SKRADD-NTRED: +0.5%
Positive Q4 returns for both indices, with NTRE edging out NTRED by less than 10bps.
NTRE included only one sector-specific REIT in Q4, following the removal of a residential REIT due to data limitations.
The most significant differences in underlying index exposures were NTRE’s 7.2% higher allocation to industrial assets and NTRED’s 4.6% greater allocation to residential assets.
Caps on constituent weights boosted Q4 returns, indicating smaller programs outperformed larger ones. Still, the size premium remains evident over time: since inception, capped NTRE and NTRED have underperformed their hypothetical uncapped versions by 5.0% and 7.6%, respectively.
Publicly-Traded REITs: -6.3%
Listed REITs fell 6.3% in Q4, a sharp reversal from strong Q3 gains, as the Fed’s hawkish December stance dampened expectations for 2025 rate cuts and pushed Treasury yields higher. Rising rates increased borrowing costs and made fixed income more attractive, triggering a broad REIT sell-off. December was the worst month of the year for listed REITs.
Listed REITs are priced in real time, making them highly sensitive to shifts in Fed policy. Non-traded REITs, by contrast, rely on appraisal-based valuations that smooth reported returns and delay market impact. But without a dovish pivot or outside catalyst, similar macro pressures could soon surface in non-traded REIT performance.
Core Real Estate Funds: +1.2%
The NFI-ODCE Index returned 1.2% gross in Q4, with 1.02% from income and 0.14% from appreciation.
Property-Level Returns: +0.9%
The NPI Index posted a 0.9% Q4 return, composed of a 1.17% income return and a -0.24% drag from negative appreciation.
Altidar High Return - Cantor Fitzgerald Income Trust: +4.7%
CFIT rebounded from a -4.3% Q3 to lead all tracked REITs with a 4.7% return in Q4. Most gains came in December, when it posted a 3.52% monthly return.
Altidar Low Return - Cottonwood Communities: -0.7%
CWREIT, a multifamily-focused REIT, posted the lowest return in Q4. A -0.82% monthly return in December pushed it into negative territory for the quarter.
Download Report
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.