The total return of the U.S. real estate investment trust market outpaced the broader equity market over the 12-month period ended March 31, although REITs underperformed the market in the first quarter of 2012, new research reveals.
The National Association of Real Estate Investment Trusts (NARIET), Washington, published this finding in a survey of REIT data derived from publicly traded securities. Members of the association are REITs and other businesses that own, operate and manage income-producing real estate, as well as those firms and individuals who advise, study and service those businesses.
Over the 12 months ended March 31, the FTSE NAREIT All Equity REITs Index provided a total return of 11.29% and the FTSE NAREIT All REITs Index returned 10.91% compared to the S&P 500’s 8.54%, the survey reveals. Strong REIT dividends contributed to REITs outperformance of the broader market.
The price-only return of the FTSE NAREIT All Equity REITs Index over the 12-month period was 7.26%, and the price return of the FTSE NAREIT All REITs Index was 5.84%, the study finds.
The total return of the S&P 500 Index for the first quarter of 2012 was 12.59% compared to 10.49% for the FTSE NAREIT All Equity REITs Index and 10.41% for the FTSE NAREIT All REITs Index. The REIT indexes, however outperformed the broad market in the month of March with the FTSE NAREIT All Equity REITs Index delivering a total return of 4.84% and the FTSE NAREIT All Equity REITs Index returning 4.39% compared to the S&P 500’s 3.29 percent.