Total returns to private equity real estate slipped from 13.3% (trailing four quarters) in the fourth quarter 2015 to 11.8% in the first quarter 2016 amid a turbulent capital-markets environment. However, real estate continued to outperform stocks and bonds by a large margin on a four-quarter trailing basis.
The industrial (14.3%) and retail (13.1%) sectors led the NCREIF Property Index (NPI) while apartments (10.9%) and offices (10.8%) lagged behind.
From a regional perspective, the West produced the strongest returns despite relatively tight income yields. The South matched the national index while the East and Midwest lagged behind.
Source : Deutsche Asset & Wealth Management