MARKET INSIGHTS
November 22, 2017

Richmond, Va. November 22, 2017 – John B. Levy & Company published the Giliberto-Levy Monitor for the third quarter of 2017, analyzing commercial mortgage investments that have produced three straight quarters of positive total returns. Private-market loans in investor portfolios posted a 1.07 percent total return in the third quarter, pushing year-to-date total returns to 5.28 percent.

Published quarterly, the Giliberto‐Levy Monitor highlights the results of the Giliberto‐Levy Commercial Mortgage Performance Index (G-L 1) and offers in‐depth market analysis and commentary on important aspects of the commercial mortgage industry. It provides income, price, total returns and spreads for office, apartment, retail, industrial and other property after adjusting for credit loss.

Other statistics include capitalization, duration, coupon rate, maturity and loan‐to‐values, and comparison of relevant returns and spreads to other debt classes such as investment grade and U.S. Treasury bonds.

The third quarter Giliberto‐Levy Monitor also referenced a pilot study of the recently launched Giliberto‐Levy High Yield Real Estate Debt Index (G-L 2), the first report of its kind to measure rates of returns from high-yield commercial real estate debt such as second mortgages, mezzanine loans and preferred equity. The G-L 2 provides additional perspective for investors to consider when thinking about debt strategies as complements to equity strategies.

Subscriptions to the Giliberto‐Levy Monitor include access to the Giliberto‐Levy Analyzer – a custom query tool that enables users to analyze total return by property on a long‐term historical basis, leveraging data collected over the past 35 years.

For more information or to subscribe to the Giliberto-Levy Commercial Mortgage Performance Index, visit jblevyco.com/index/.