• In the 12 months to December 2017, the CBRE Long Income Index delivered a total return of 13.5%.
  • This compares with a figure of 11.8% for the CBRE Monthly Index, which tracks the mainstream commercial real estate market.
  • Long Income performance was underpinned by capital growth of 8.3%, as net initial yields declined by 29bps.
  • The Long Income Index can be divided into three types of investment structure, all of which exceeded the performance of the Monthly Index.
  • Income Strips out-performed with a total return of 19.5% over 2017, followed by Ground Rents at 15.1% and Sale and Lease Backs at 12.2%.
  • Long Income IRRs decreased -57bps in 2017. Sale and Lease Back IRRs fell by -52bps, with Income Strips moving -50bps and Ground Rents -45bps.