Recent Study Finds Total Economic Impacts Attributed to MEPT Investments Equates to $18.1 billion Over Last 34 Years

MEPT Receives Top Ranking in GRESB Benchmark

During the first quarter of 2017, MEPT acquired Kedron Village II, an 157,185 square foot retail center for a total gross purchase price of $30.9 million.
Kedron Village II is located 30 miles southwest of downtown Atlanta in Peachtree City and is adjacent to an existing Fund-owned asset, Kedron Village I, a 93,356 square foot, grocery-anchored retail center acquired in 2011.


JV Closes on Acquisition of Two Rector Street

Multi-Employer Property Trust (MEPT), advised by Bentall Kennedy U.S. LP, in a joint-venture with Cove Property Group LLC have acquired the office building at 2 Rector St. in New York, NY from Kushner Companies and CIM Group LP…

First look: ‘Transformative’ 710-unit residential project planned in South End
Leggat McCall Properties on Monday submitted an expanded project notification form to the Boston Redevelopment Authority that highlights in greater detail the firm’s plans for a "transformative, contemporary development" spanning a full city block in the South End. The project team has named the project the "Harrison Albany Block" and proposed 710 residential units, a 40,100-square-foot office and 14,100 square feet of retail space for a 3.1-acre site in the South End formerly owned by Boston Medical Center…


Latest look at Trammell Crow’s updated Diridon project
A lot has changed in the years since downtown San Jose’s last office tower was built about six years ago. Tech&rsquos influence on workspace design has completely transformed the look and feel of new projects. Wide-open floors are in. So is proximity to housing, services and transit…



 

Benchmark Comparisons

There are three industry benchmarks used to measure Fund-level performance and property-level performance: the NCREIF Property Index; the NCREIF Open-End Index; and the NCREIF Fund Index - Open End Diversified Core Equity (NFI-ODCE). Out of the three, the NFI-ODCE currently offers the most appropriate benchmark for evaluating MEPT’s total performance.

The most widely used real estate benchmark, the NCREIF Property Index (NPI), is composed of approximately 7,371 institutional grade, operating properties valued at over $516 billion. The NPI is designed to measure the performance and return characteristics of a set of core properties on an unleveraged basis. The properties are pooled from different types of funds and single-investor portfolios, all with varying investment strategies. The return data for the NPI can be analyzed by sector and region, as well as subsectors and sub-regions. The return data is also available on a historic basis and can be used for complex analysis. Since the NPI is derived from property level performance, it does not measure the effect of cash, leverage or management fees on returns, nor does it take into consideration differences in property valuation frequency in the Index. When benchmarked against MEPT's property level returns (operating real estate only), the NPI does provide an apples to apples, or real estate to real estate, comparison of performance.

NCREIF has developed a sub-index, the NCREIF Open-End Index (OPI), comprised of only those properties in the NPI owned by open-end funds. MEPT believes that the sub-index offers an even more applicable benchmark than the NPI to measure the performance of MEPT’s real estate, since it allows for the comparison of properties that are more frequently valued than those in the NPI as open-end funds have more stringent valuation requirements than privately held and single investor portfolios. The most relevant comparison would be the performance of MEPT’s operating real estate portfolio to the performance of the OPI. NewTower, MEPT's Trustee, relies on this benchmark to conduct quarterly attribution analyses.

In 2005, NCREIF released an open-end Fund level index, the NCREIF Fund Index - Open End Diversified Core Equity (NFI-ODCE). Different from the NPI, the NFI-ODCE is comprised of only open-end funds, and excludes all the closed-end and separate account real estate portfolios. The NFI-ODCE index reports on both a historical and current basis the results of 24 open-end, commingled funds pursuing a core investment strategy. Currently, the benchmark includes funds with total market value of $174 billion, net real estate asset value.The NFI-ODCE is best suited as a benchmark from MEPT since it specifically covers core funds and the effects of their cash balances and leverage on fund performance. Since open-end funds in the NFI-ODCE have different strategies, the funds may perform well at different times in the real estate/economic cycle. Therefore, it makes sense to look at long-term comparisons of the NFI-ODCE because the performance of the varying fund strategies can be tested throughout all stages of the real estate cycle.

MEPT's long-term returns have consistently outpaced the benchmarks. A dollar invested in MEPT in 1982 at the Fund's inception has significantly outgrown that same investment in the NCREIF Property Index and the NFI-ODCE.

For more information, please visit www.ncreif.org

 

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