Non-Traded REIT Indices - Q1 2025
- jackkearney54
- May 8
- 2 min read
Updated: Jun 26
Non-Traded REIT Index Overview
The SK Research and Due Diligence, LLC ("SKRADD") Non-Traded REIT Equity indices track the performance of the ten largest non-traded, perpetual-life equity REITs, based on net assets and subject to eligibility requirements including valuation reporting frequencies.
Constituent candidates for the SKRADD Non-Traded Equity REIT Index (SKRADD-NTRE) include non-traded, perpetual-life equity REITs. The SKRADD Non-Traded Equity Diversified REIT Index (SKRADD-NTRED) does not allow for the inclusion of sector-specific programs.
REIT Category Eligibility
Category | NTRE | NTRED |
|---|---|---|
Diversified Equity REITs | Yes | Yes |
Sector-Specific Equity REITs | Yes | No |
Mortgage REITs | No | No |
The S&P United States REIT Index (SP US REIT) measures the performance of publicly-traded REITs domiciled in the U.S. The NCREIF Fund Index – Open-End Diversified Core Equity (ODCE) measures the time-weighted, gross-of-fees performance of open-end commingled funds pursuing a core investment strategy. The NCREIF Property Index (NPI) measures the property-level returns for private real estate properties held for investment purposes only. As an appraisal-based index, the NPI is likely to contain substantial price smoothing.
The table above lists the returns for non-traded equity REITs with research coverage on Altidar. While some of these programs may be index constituents for certain periods, inclusion in this table does not necessarily indicate index membership.
The table above illustrates the quarterly and cumulative impacts of applying constituent weight caps on the NTRE and NTRED index returns. It compares actual quarterly returns (with caps) against hypothetical uncapped returns, highlighting the performance differences across each period. Capping the constituent weights promotes a more balanced market representation by limiting the influence of any single constituent on the index returns, while uncapped returns may be heavily influenced by the performance of larger constituents.
The table above illustrates the quarterly and cumulative impacts of applying constituent weight caps on the NTRE and NTRED index returns. It compares actual quarterly returns (with caps) against hypothetical uncapped returns, highlighting the performance differences across each period. Capping the constituent weights promotes a more balanced market representation by limiting the influence of any single constituent on the index returns, while uncapped returns may be heavily influenced by the performance of larger constituents.
The chart above shows exit capitalization rates utilized by index constituents in Q1 valuations, segmented by property type. Some constituents may be excluded due to limited or unavailable disclosures.