There have been three major cycles since the formation of the U.s. core open-ended real estate fund industry, each of which was 12+ years in length and generated returns of 10%+ annually. Following a 25% loss over the last two years, values have stabilized. Core real estate has now produced six consecutive quarters of positive total Notes: This chart shows cumulative positive total returns until each cycle ended, identified by at least two quarters of negative total returns (ex: the single-quarter of negative total return in Q2 2020 did not indicate the end of the cycle). Similarly, cumulative value-losses identify periods of sustained negative capital returns until values increased for at least two consecutive quarters. The most recent quarter of data (Q424) was the first quarter of positive capital returns this cycle (following 9 quarters of value total returns can be positive even in periods when values are moderately negative (ex: 1994-1995; “Tech-wreck" of 2001-2022; Q3 2024). An earlier version of this chart utilized NPl-ODCE, unlevered property-level returns. The above version utlizes NFI- ODCE, a fund-level capitalization weighted return index which includes property investments at effective ownership share, cash balances, leverage, and other fund level impacts. OPINION PIECE. PLEASE SEE IMPORTANT DISCLOSURES IN THE ENDNOTES.