Ncf Shqdljxo Npi Flash Report 3q09[1]

NPI Snapshot 3rd Quarter 2009 Market Value ($ Millions) Percent of Total

Number of Properties

3rd Quarter

2nd Quarter

2009 Returns

2009 Returns

1 Year Returns

NCREIF Property Index 6,186

Total Income Appreciation

-3.32 1.56 -4.88

-5.20 1.50 -6.70

-22.1 5.8 -26.7

59,096.5 24.2%

1,463

Total Income Appreciation

-3.00 1.34 -4.34

-5.13 1.31 -6.44

-23.0 5.0 -27.0

4,756.7 2.0%

77

Total Income Appreciation

-4.47 1.12 -5.59

-5.46 1.23 -6.69

-26.4 4.3 -29.8

Industrial

37,091.1 15.2%

2,195

Total Income Appreciation

-3.94 1.73 -5.68

-5.09 1.67 -6.76

-22.4 6.5 -27.5

Office

88,747.8 36.4%

1,499

Total Income Appreciation

-3.30 1.63 -4.93

-6.52 1.56 -8.08

-24.5 5.9 -29.1

Retail

54,126.2 22.2%

952

Total Income Appreciation

-3.14 1.60 -4.75

-3.03 1.53 -4.56

-15.8 6.2 -21.0

Total Index

243,818.3 100.0%

Property Type Subindexes Apartment

Hotel

Regional Subindexes East

80,719.5 33.1%

1,419

Total Income Appreciation

-2.44 1.54 -3.98

-5.21 1.49 -6.71

-23.5 5.6 -27.9

Midwest

25,808.6 10.6%

871

Total Income Appreciation

-2.43 1.69 -4.12

-4.46 1.61 -6.07

-17.9 6.3 -23.1

South

51,695.6 21.2%

1,779

Total Income Appreciation

-3.15 1.58 -4.73

-4.60 1.55 -6.15

-18.9 6.1 -23.9

West

85,594.5 35.1%

2,117

Total Income Appreciation

-4.49 1.52 -6.01

-5.75 1.45 -7.21

-23.7 5.7 -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. 2 of 2