Real estate investments recorded moderate returns in the first quarter, but capital appreciation, income and total returns were all lower than in the final three months of 2010, ReJournal.com reported.

According to the National Council of Real Estate Investment Fiduciaries (NCREIF), total return was 3.4 percent in the first quarter, including a 1.5 percent income return and a 1.8 percent capital appreciation return.

NCREIF, a nonprofit trade association that tracks the performance of $256 billion of commercial real estate investments, said it was the fifth consecutive quarter of positive total returns for the 6,267 non-agricultural, income-producing office, industrial, retail and apartment properties tracked by the NCREIF Property Index.

Net operating income fell in the first quarter from the final three months of 2010, however, and vacancy rates rose for the properties included in the index.

“Institutional real estate continues its steady climb back from the depths of the downturn as property values continue to improve due to strong investor interest,” said Roy Rendino, the trade group’s CEO, in a release. “However, NOI growth persists as an issue, and vacancy rates remain high.”

The index tracks properties that have been acquired on behalf of tax-exempt institutional investors, such as pension funds, in 195 metropolitan areas. Neighborhood retail led all subcategories with a 6.6 percent total return; regional malls and community centers were among the worst-performing segments.