Private commercial mortgage loans held by life insurance companies posted a 1.56% total return in the second quarter of 2012, according to the LifeComps Commercial Mortgage Performance Index.
The company says the second quarter's gains matched the performance achieved during the first quarter, resulting in a 3.14% total return over the first six months of 2012. Income and price returns of 1.38% and 0.18%, respectively, equaled the first quarter's returns despite Treasury yields and mortgage spreads moving in opposite directions during the two quarters.
The annual return for the LifeComps portfolio was 8.41%, the company says. Income contributed 5.77% and appreciation 2.64%, with performance benefiting primarily from lower Treasury yields.Â Â Treasury yields for 10-year maturities declined 151 basis points from 3.18% over the 12-month period.
Of the four major property types, retail performed best over 12 months, with a total return of 8.89%, compared to 8.64% for multifamily, 7.82%Â for office and 7.66% for industrial.