Strong performance for commercial mortgages continues

By Bridging Loan Directory -


The Giliberto-Levy Commercial Mortgage Performance Index (GLCMPI), which tracks private-market loans held in investor portfolios, produced a 0.57% total return in Q4 2011, according to data released by IPD and reported by Property Funds World.

The index reflects a market-value-weighted blend of office, apartment, retail, industrial, lodging and other property types.

For perspective, the one-year total return for the GLCMPI was 6.90%, the three-year total return was 10.57% and the five-year total return was 6.50%. For the five years ended 31 December, 2011, the leading sector within the index was Other (hospitality, mixed-use and other property types) at 6.66%, closely followed by Office at 6.63%, Retail at 6.55% and Industrial at 6.54%.

Interestingly, the total return for the index over the past five years (6.50%) significantly outpaced the S&P 500 (-0.25%), the NAREIT Equity Index (-1.42%), 90 day T-Bills (1.49%) and CPI (2.26%).