We’re pleased to share the latest report from our partners at John B. Levy & Company as the Giliberto-Levy High-Yield Real Estate Debt Index (G-L 2) posts its first negative quarterly return since 2015.

John B. Levy & Company — October 21, 2025 — ​The Giliberto-Levy High-Yield Real Estate Debt Index (G-L 2) posted a total return of -0.13% for the second quarter of 2025, marking its first negative quarterly result since the third quarter of 2015. This compares with a revised +1.00% total return for the first quarter.

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​Giliberto-Levy High-Yield Real Estate Debt Index (G-L 2)
Reports First Negative Quarterly Return Since 2015

John B. Levy & Company — October 21, 2025 —​ The Giliberto-Levy High-Yield Real Estate Debt Index (G-L 2) posted a total return of -0.13% for the second quarter of 2025, marking its first negative quarterly result since the third quarter of 2015. This compares with a revised +1.00% total return for the first quarter.
 
“The second quarter brought a few surprises,” said John B. Levy, President of John B. Levy & Company and co-creator of the Giliberto-Levy indices. “While the move was relatively modest, it underscores the shifting dynamics within the high-yield commercial real-estate debt market.”
 
Q2 2025 Highlights

• Loan Values: Declined across several office and multifamily transactions.
• Credit Events: Increased slightly from 4.68% to 4.72% — a small but meaningful step in the wrong direction.
• Industrial Sector: Recorded the first credit event in the 15-year history of the G-L 2, ending a long streak of strong performance.

Industrial loans have historically been a bright spot within the high-yield space. However, this quarter’s event suggests the sector may no longer be entirely immune to broader market pressures.
 
Despite the softer quarter, the G-L 2 continued to grow in both depth and participation, with a strong influx of new institutional subscribers and data providers enhancing the index’s coverage and analytics.
 
About the Giliberto-Levy Indexes
The G-L Commercial Mortgage Performance Index, or G-L 1, tracks investment results for fixed-rate senior mortgages made by lenders such as life insurance companies, GSEs, pension funds, and investment managers and held on their balance sheets. G-L 1 has been produced continuously since 1993, with a return inception date of January 1, 1972.
 
The G-L High-yield Real Estate Debt Index, or G-L 2, measures performance for a variety of investments, such as mezzanine loans, leveraged whole-loan, and B-notes. G-L 2 production started in 2018. The return inception date is January 1, 2010.
 
To receive more information about the indexes, please contact Julia Grant ([email protected]). 

Source: jblevyco.com​