The seventh edition of the Global ODCE Index turned positive and reported a total return of 1.99% in Q3 2024. This is the first positive result after eight consecutive quarters of negative performance.
The Q3 2024 release features the performance of 49 funds with a combined GAV of US$ 350 billion.
Key highlights:
- The Q3 2024 Global ODCE fund index performance turned positive, with a net total return of 1.99%, up by 295 bps from -0.96% posted in the previous quarter.
- For the first time since Q1 2022, all three regions recorded positive performance. Other than Europe, the other two regions saw a quarter-on-quarter increase in performance. European ODCE funds underperformed the wider ODCE index but maintained positive returns of 0.03% in Q3 2024.
- At 0.82%, the Q3 2024 accrual-based income return reached its highest level in four years. On a 1-year rolling annual basis the income return stands at 3.13%. Europe recorded the highest 1-year rolling income return of 3.41%, followed by the US with 3.18%, and 2.81% in Asia Pacific.
- Global ODCE real estate portfolios are dominated by allocations to the mainstream industrial / logistics and office sectors. In all three regions, these two sectors have a combined weight of over 50%.
View detailed analysis via the Index Analysis Tool or download the report, Excel and snapshots below.