Close Close
ThinkAdvisor

Portfolio > Alternative Investments > Private Equity

REITs Continue to Beat Equity Market, NAREIT Says

X
Your article was successfully shared with the contacts you provided.

U.S. REITs continued to outperform the broader equity market in July, the first seven months of 2012, as well as on a 12-month basis as of July 31, according to NAREIT. Nearly all sectors of the REIT market also delivered double-digit gains during the first seven months of the year, NAREIT says.

NAREIT reports that on a total-return basis, the FTSE NAREIT All REITs Index gained 2.30% and the FTSE NAREIT All Equity REITs Index gained 2.17% in July, while the S&P 500 rose 1.39%.

For the first seven months of the year, the FTSE NAREIT All REITs Index was up 18.08% and the FTSE NAREIT All Equity REITs Index was up 17.40%, compared to the S&P 500’s gain of 11.01%.

On a 12-month basis, the FTSE NAREIT All REITs Index delivered a 14.79% total return and the FTSE NAREIT All Equity REITs Index delivered a 13.72% gain, compared to the S&P 500’s gain of 9.13%.

NAREIT also found that nearly all sectors of the U.S. REIT market delivered double-digit gains for the first seven months of this year.

More on this topic

Retail was the top-performing sector with a 23.57% total return, led by the regional mall subsector with its 25.11% return.

Among other core REIT market sectors, industrial was up 16.54%; office was up 13.79% and apartments were up 13.30%.

Among other equity REITs, the infrastructure sector was up 20.80%; health care was up 19.81%; and timber REITs were up 18.31%.

The FTSE NAREIT Mortgage REITs Index gained 23.18%, led by the Commercial Financing sector with its 24.01% gain.

REITs also continued to reward income investors in July, NAREIT reports. At July 31 the dividend yield of the FTSE NAREIT All REITs Index was 4.16%, and the dividend yield of the FTSE NAREIT All Equity REITs Index was 3.23%. The dividend yield of the FTSE NAREIT Mortgage REITs Index was 12.50%, with Home Financing REITs yielding 13.06%. In comparison, the S&P 500’s dividend yield was 2.26%.