Oct 10, 2011 --- The U.S. REIT market continued to outperform the broader equity
market in the first nine months of 2011, in spite of losing ground to
the S&P 500 in the third quarter, according to the National
Association of Real Estate Investment Trusts. ---
In the third quarter, the total return of the FTSE NAREIT
All REITs Index was down 14.62% and the FTSE NAREIT All Equity REITs
Index was down 15.07%, while the S&P 500 was down 13.87%.
NAREIT reported the total return of the FTSE NAREIT All
REITs Index was down 6.14%, and the FTSE NAREIT All Equity REITs Index
was down 6.05% in the first nine months of the year, ended September 30. By comparison, the S&P 500 was down 8.68% in the same period.
Substantial REIT dividends (REITs must pay out at least
90% of their taxable income to shareholders as dividends) accounted for
much of the total return advantage over the S&P 500 in the first
three quarters of 2011, according to a press release. The FTSE NAREIT
All REITs Index’s cash dividend yield at September 30 was 5.23% compared
to 2.13% for the S&P 500.
On a 12‐month basis ended September 30, the FTSE NAREIT All REITs
Index delivered a total return of 1.06% and the FTSE NAREIT All Equity
REITs delivered 0.93% compared with 1.14% for the S&P 500.
Top performing sectors of the REIT market in the first nine months of the year were manufactured homes, up 12.55%; self‐storage, up 10.42%; and apartments, up 1.84%. The same sectors led the REIT market on a 12‐month trailing basis ended September 30, with manufactured homes up 18.35%; self‐storage up 16.69%, and apartments up 12.73%. While REIT capital raising declined to $7.9 billion in the
third quarter from $13.7 billion in the second quarter, the $43.4
billion raised by REITs in public equity and debt offerings in the first
nine months of 2011 kept the industry on track to match or surpass the
$47.5 billion raised in all of 2010.