NPI Snapshot

3rd Quarter 2009

Market Value
3rd Quarter 2nd Quarter
($ Millions) Number of 1 Year
2009 2009
Percent of Total Properties Returns
Returns Returns
NCREIF Property Index

Total Index 243,818.3 6,186 Total -3.32 -5.20 -22.1

100.0% Income 1.56 1.50 5.8
Appreciation -4.88 -6.70 -26.7

Property Type Subindexes

Apartment 59,096.5 1,463 Total -3.00 -5.13 -23.0

24.2% Income 1.34 1.31 5.0
Appreciation -4.34 -6.44 -27.0

Hotel 4,756.7 77 Total -4.47 -5.46 -26.4

2.0% Income 1.12 1.23 4.3
Appreciation -5.59 -6.69 -29.8

Industrial 37,091.1 2,195 Total -3.94 -5.09 -22.4

15.2% Income 1.73 1.67 6.5
Appreciation -5.68 -6.76 -27.5

Office 88,747.8 1,499 Total -3.30 -6.52 -24.5

36.4% Income 1.63 1.56 5.9
Appreciation -4.93 -8.08 -29.1

Retail 54,126.2 952 Total -3.14 -3.03 -15.8

22.2% Income 1.60 1.53 6.2
Appreciation -4.75 -4.56 -21.0

Regional Subindexes

East 80,719.5 1,419 Total -2.44 -5.21 -23.5

33.1% Income 1.54 1.49 5.6
Appreciation -3.98 -6.71 -27.9

Midwest 25,808.6 871 Total -2.43 -4.46 -17.9

10.6% Income 1.69 1.61 6.3
Appreciation -4.12 -6.07 -23.1

South 51,695.6 1,779 Total -3.15 -4.60 -18.9

21.2% Income 1.58 1.55 6.1
Appreciation -4.73 -6.15 -23.9

West 85,594.5 2,117 Total -4.49 -5.75 -23.7

35.1% Income 1.52 1.45 5.7
Appreciation -6.01 -7.21 -28.1
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 NPI Snapshot
3rd Quarter 2009
NCREIF Property Index Methodology

• Calculations are based on quarterly returns of individual properties before deduction of investment
management fees.
• Each property’s return is weighted by its market value.
• Income and Capital Appreciation changes are also calculated.

Universe of Properties
• All properties have been acquired on behalf of tax-exempt institutions and held in a fiduciary
environment.
• All Data Contributing Members of NCREIF must submit all properties held in the U.S. (including
properties in taxable accounts and in all “lifecycles”), but only qualifying properties enter the NPI.
• Qualifying properties include:
- Wholly owned and joint venture investments.
- Existing properties only-no development projects.
- Only investment-grade, income-producing, operating properties: apartments, hotels, industrial,
office, and retail.
• The database increases quarterly as participants acquire properties and as new members join NCREIF.
• Sold properties are removed from the Index in the quarter the sales take place (historical data
remains).
• Each property’s market value is determined by real estate appraisal methodology, consistently
applied.

Rates of Return
• Total Return: includes appreciation (or depreciation), realized capital gain (or loss) and income. It is
computed by adding the Income return and Capital Appreciation return on a quarterly basis.
• Income Return: measures the portion of total return attributable to each property ’s net operating
income or NOI. It is computed by dividing NOI by the average quarterly investment for the quarter.
NOI

Beginning Market Value + 1/2 Capital Improvements - 1/2 Partial Sales - 1/3 NOI

• Capital Appreciation Return: measures the change in market value adjusted for any capital
improvements or partial sales for the quarter.

(Ending Market Value - Beginning Market Value) + Partial Sales - Capital Improvements
Beginning Market Value + 1/2 Capital Improvements - 1/2 Partial Sales - 1/3 NOI

The underlying data and text has been obtained from sources considered to be reliable; the information is
believed to be accurate, but is not guaranteed. This report is for information purposes only and is not to
be an offer, solicitation, or recommendation with respect to the purchase or sale of any security or a
recommendation of the services supplied by any money management organization. Past performance is
no guarantee of future results.
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