May 5, 2011

Offices Lift U.S. REITs to Outperformance in 2011: NAREIT Report

REITs delivered a 22.88% total return compared to 17.22% for the S&P 500 through April 30

The office sector topped all other sectors in the real estate investment trust market in the first four months of the year, helping it outperform U.S. stocks, the National Association of Real Estate Investment Trusts (NAREIT) reported Thursday.

Through April 30, U.S. REITs continued to outperform the broader equity market in the first four months of the year with a 13% gain compared to a gain of 9.06% for the S&P 500 Index, NAREIT reported in a news release.

On a 12-month basis ended April 30, REITs delivered a 22.88% total return compared to 17.22% for the S&P 500.

On a total return basis, the FTSE NAREIT All Equity REITs Index gained 5.11% and the FTSE NAREIT All REITs Index was up 4.89% in April compared to 2.96% for the S&P 500.

“The Office sector topped other major REIT market sectors in April with a 6.87% return,” according to the NAREIT report. “Apartments and Retail followed closely with 6.59% and 6.55% returns, respectively. The Retail sector was led by Regional Malls with a 7.15% return. The Industrial sector delivered a 2.33% return for the month.”

Offices also topped other major sectors for the first four months of 2011 with a 15.01% return, followed by Apartments with a 13.91% gain; Industrial with 13.77% and Retail with 11.36%. Regional malls again topped the Retail sector with a gain of 13.90%.

NAREIT will sponsor an investor forum at the Waldorf-Astoria Hotel in New York from June 7 to 9.

Read Research Magazine’s “REITs: Looking Up” at AdvisorOne.com.

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