NREI_INSTITUTIONAL OUTLOOK_ Penton Media August 10, 2009 If you want to view this on the web go to: http://enews.penton.com/enews/nrei/v/728 ONLINE EXCLUSIVE --Tanking Real Estate Values Take Toll on Pension Funds Public pension funds are under enormous pressure to claw back a seemingly endless decline in the value of their real estate investments. The extent of the damage is revealed in the release of a few of the larger funds' annual reports. The nation's largest pension fund, the California Public Employees' Retirement System (CalPERS), has reported a litany of recent troubles. The bellwether institutional investor reported that the value of total assets under management at the end of June was $180.9 billion, down from $237 billion a year earlier, or a drop of 23.6%. To view the full article go to: http://nreionline.com/finance/news/real_estate_values_toll_pension_funds/ CAPITAL TRENDS --Is the Worst Behind Us? By David Lynn Despite some signs of stabilization, the second quarter was another difficult one for U.S. commercial real estate. Total returns for the NCREIF Property Index (NPI) -- a widely used investment performance benchmark for institutional-quality real estate assets published by the National Council of Real Estate Investment Fiduciaries -- declined 5.2% in the second quarter after dipping 7.3% in the first quarter. Retail was the best performing sector over the past quarter, benefitting from relatively strong income growth and a smaller capital decline than other sectors. The office sector was the worst performer as it struggled with a sharp drop in occupancy, steep rent declines, and considerable decompression in the capitalization rate. To view the full article go to: http://nreionline.com/finance/news/npi_retail_stabilization_0810/ INSTITUTIONAL TIDBITS --Slump in Property Values May Be Nearly Over, Says CB Richard Ellis Investors Staff report The sharp drop in valuations of commercial real estate properties during the past year may be nearing a bottom, according to Los Angeles-based CB Richard Ellis Investors, in its recently released installment of "Investment Research Quarterly". Although the bid-ask gap remains wide between buyers and sellers, three indicators are providing some evidence that pricing will bottom out sooner than later. First, the sharp pricing correction that has already taken place will continue to have a dramatic impact on sellers' expectations, the authors of the report conclude. The NCREIF Property Index depreciated by 9.5% in the fourth quarter of 2008 and 8.7% in the first quarter of 2009, the two worst quarters in the history of the index that spans more than 30 years. To view the full article go to: http://nreionline.com/finance/news/slump_nearly_over_says_cb_richard_ellis_investors_0810/ --$30 Million Equity Infusion Helps Lillibridge Expand Health Care Real Estate Venture Staff report Prudential Real Estate Investors has committed another $30 million of equity to Chicago-based Lillibridge for the development and acquisition of health care real estate. Privately held Lillibridge currently has an ownership interest in approximately 6 million sq. ft. of health care real estate in 16 states. These properties include new developments and repositioned assets. Prudential Real Estate Investors, based in Parsippany, N.J., has partnered with Lillibridge on three other equity raises in the past, and was one of Lillibridge's initial investors when the company first began raising equity in April 1999. The real estate investment manager's total equity commitment to Lillibridge over the past decade stands at more than $135 million. To view the full article go to: http://nreionline.com/finance/news/lillibdge_expand_health_care_real_estate_venture_0810/ Advertisement ---------------------------------------- EXPO REAL is a networking exhibition which covers the full spectrum of the international real estate industry: corporate real estate managers, property consultants, project developers, banks and investors, etc. The 2008 show attracted 1,856 exhibitors and 42,000 participants. www.exporeal.net ---------------------------------------- Featured Research ---------------------------------------- *Top 25 Brokerages 2009 (http://nreionline.com/research/nrei-top-25-brokerages-0401/) *Seniors Housing Research (http://nreionline.com/seniorshousing/research-offer/index.html) *Distressed Real Estate (http://nreionline.com/distressedinventory/) *2009 Real Estate Investment Outlook (http://nreionline.com/research/2009_real_estate_investment_outlook/) ---------------------------------------- Advertisement ---------------------------------------- In the face of stalled transactions and frozen liquidity, Harvard Business School's Opportunities in Mortgage Markets program provides the latest research to empower executives to benchmark housing values and identify potential investment opportunities in real estate securities. 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WHITE PAPER Back To Basics To Stay Strong In Commercial Real Estate (http://nreionline.com/research/ge-capital-real-estate-0729/) To succeed in this real estate market, investors and managers need a new kind of toolbox... ---------------------------------------- Advertisement ---------------------------------------- http://w.on24.com/r.htm?e=158093&s=1&k=D37ACCF54DA88308EC4915E9635E9991&partnerref=nreiinviteNL ---------------------------------------- ---------------------------------------- The Real Estate Investment Securities Association (REISA), formerly the Tenant-In-Common Association (TICA), will hold its Annual Conference October 18-20, 2009 at the Bellagio Hotel in Las Vegas. This event provides educational and networking opportunities for sponsors, broker-dealers and registered representatives. http://www.reisa.org/sections/events.registernow.php ---------------------------------------- ABOUT THIS NEWSLETTER Do you have editorial comments or ideas regarding NREI Institutional e-newletter? Contact Sibley Fleming at mailto:sibley.fleming@penton.com You are subscribed to this newsletter as #email# To subscribe to this newsletter go to: http://subscribers.nreionline.com/?tc=NLSUB To unsubscribe from this newsletter go to: http://pbinews.com/webforms/newsletter/unsub/?email=#email#&lid=#list_id#&mid=#message_id# For information on advertising in this newsletter, please contact Marianne Rivera at 312-840-8466 or by email at mailto:marianne.rivera@penton.com. 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