#USA #New York #CREFC #NCREIF #Debt Fund Index

Introduction

The CRE Finance Council (CREFC) and the National Council of Real Estate Investment Fiduciaries (NCREIF) have announced the introduction of a groundbreaking benchmark: the NCREIF/CREFC Fund Index Open-End Moderate-Yield Debt. This Index marks a significant development as the first-ever institutional fund-level benchmark specifically for private real estate debt funds in the market.

Significance of the Index

As of June 30, 2025, the newly launched Index comprises a selection of 12 open-end debt funds that collectively represent more than $30 billion in assets. Furthermore, these funds encompass over 500 underlying loans that have demonstrated their performance since the fourth quarter of 2017. This substantial data provides the market with a robust and representative measure of the sector's performance.

The introduction of the Moderate-Yield Debt Index aims to address a long-standing need in the market for a standardized and transparent benchmarking tool. It reflects the risk-return characteristics necessary for understanding and navigating actively managed open-end commercial real estate debt strategies effectively.

Consultation and Refinement Phase

To ensure the Index meets the industry’s expectations, a consultation phase will be implemented lasting one to two years. This phase aims to gather feedback from industry professionals on various criteria, including the Index’s methodology and governance. NCREIF and CREFC intend to engage extensively with stakeholders to refine methodology, establish data standards, and enhance reporting practices during this period. After the initial consultation, should the feedback deem it appropriate, the NCREIF/CREFC Fund Index Open-End Moderate-Yield Debt may be formalized as an official product.

Additional Resources and Future Developments

In addition to the Moderate-Yield Debt Index, CREFC and NCREIF also publish an Open-End Debt Fund Aggregate. This serves as a research database including funds with a combination of Core, Moderate-Yield, and High-Yield investment styles. They welcome new data contributors for both the Aggregate and the Moderate-Yield Debt Index to foster engagement and expansion in this growing sector.

Looking towards the future, there is potential for the development of Core-Yield and/or High-Yield Debt Indices, depending on market demand and the evolution of the open-end private real estate debt fund space. This flexibility underscores the Index's design, aimed at responding to the industry’s dynamic nature and ever-evolving needs.

About CREFC

The CRE Finance Council represents a robust trade association within the nearly $6 trillion commercial real estate finance industry, boasting a membership of approximately 400 companies and 19,000 professionals. Member firms include a diverse array of participants such as balance sheet and securitized lenders, loan and bond investors, private equity firms, servicers, rating agencies, and borrowers. Through its more than 30 years of operations, CREFC has played a crucial role in promoting the efficiency, transparency, and liquidity of the commercial real estate finance markets. Furthermore, they act as advocates for industry standards, regulatory matters, and education across the sector.

For individuals or entities seeking additional information or wishing to provide feedback regarding the new Index, they are encouraged to contact Lisa Pendergast at [email protected] or Dan Dierking at [email protected]