Private Mortgage Turn negative returns in the third quarter

 

Friday, Mar 06,2009, 4:40:17 PM   Click:

Private Mortgage Turn negative returns in the third quarter of 2008 BOSTON, February 20
BOSTON, February 20 / PRNewswire / - Following positive gains of 0.26 percent in second quarter 2008 and 0.82 percent in first quarter 2008, commercial mortgage loans held by life insurance companies posted a total return of -2.08 percent for the third quarter of 2008, according to the LifeComps Commercial Mortgage Index.

Total return for the third quarter, 1.61 percent was income return and -3.69 percent was price return. The decrease in prices has led to the back of rising mortgage spreads and lower evaluations outweighs the positive effect of cash to lower yields.

For the twelve months ended 30 September 2008, the total return was positive at 2.06 per cent, of which 6.51 percent was income return and -4.45 percent was price return. The type of property with the highest total return over the prior 12 months with a bureau of 2.34 percent return. Retail and apartment lowest total return of 1.85% each, but the detail a little better than the apartments once a quarter and year to date.


                               Commercial Mortgage Loan
                     Total Property Type 9/30/08

                                     Quarter YTD 12 months
      Apartment -2.22% -1.47% 1.85%
      Office -1.90% -0.58% 2.34%
      Retail -2.05% -1.15% 1.85%
      Industrial -2.11% -0.94% 2.11%
      Total -2.08% -1.01% 2.06%

About LifeComps

The LifeComps Commercial Mortgage Index is the only published reference to the private commercial mortgage market on the basis of cash flow, which was collected on a quarterly basis for the participation of life insurance companies since 1996. Active in lending LifeComps Index 6700 with a total principal balance of approximately $ 86.3 billion and the value of $ 82.6 billion. The weighted average duration is 4.3 years and the average loan-to-value is 58.4 per cent. Since its inception, the database has LifeComps individual cash flows of over 11,500 loans with balances totaling over $ 155 billion. More than 4,600 loans totaling $ 61 billion were followed starting provision.

Participants include life insurers Allstate Life Insurance Company, CIGNA Investment Management, The Equitable, John Hancock, Nationwide, Northwestern Mutual, Principal Financial and Prudential Insurance Company of America. For more information, visit http://www.lifecomps.com.

SOURCE LifeComps

CONTACT: Northwestern Mutual Media Relations, 1-800-323-7033, mediarelations@northwesternmutual.com

Copyright © 2009 PR Newswire BOSTON, February 20 / PRNewswire / - Following positive gains of 0.26 percent in second quarter 2008 and 0.82 percent in first quarter 2008, commercial mortgage loans held by companies of Life Insurance posted a total return of -2.08 percent for the third quarter of 2008, as LifeComps Commercial Mortgage Index.