Third quarter REIT performance from National Association of Real Estate Investment Trusts (NAREIT) showed that U.S. REITs considerably outperformed the broader equity market in the first nine months of 2010.
According to NAREIT, REIT returns were nearly five times greater than those of the broader U.S. equity market in the first three quarters of 2010. The FTSE NAREIT Equity REIT Index delivered a 19.10% total return and the FTSE NAREIT All REITs Index delivered an 18.50% total return for the period, compared to 3.89% for the S&P 500.
On a 12-month basis ended Sept. 30, NAREIT found that “REITs nearly tripled the returns of the broader market,” with the FTSE NAREIT Equity REIT Index delivering a 30.28% total return and the FTSE NAREIT All REITs Index delivering 28.27%, compared to 10.16% for the S&P 500.
The Apartments sector was the top performing segment of the U.S. REIT market in the first nine months of the year with a 32.83% total return, according to NAREIT. Other top performing segments according to NAREIT were: Free-Standing Retail facilities, up 29.99%; Diversified REITs, up 23.07%; Self-Storage REITs, up 22.34%; Regional Malls, up 21.86%; and Lodging/Resorts, up 19.12%.