The Markets November 2, 2010

REITs Enjoying Strong 2010

REITs continued their strong rally through October, and REIT total returns year-to-date through October 31 were triple those of the S&P 500 for the same period, according to new data.
Reported by

A news release from the National Association of Real Estate Investment Trusts (NAREIT) said the total return of the FTSE NAREIT Equity REIT Index was 24.7% and the total return of the FTSE NAREIT All REITs Index was 23.9% for the first ten months of the year, compared to 7.84% for the S&P 500.

In October, the FTSE NAREIT Equity REITs Index gained 4.7% and the FTSE NAREIT All REITs Index gained 4.56% compared to 3.8% for the S&P 500. On a year-to-date basis through October 31, all but one sector of the REIT market delivered strong double-digit returns. Among the top performing sectors were Apartments (up 38%), Lodging/Resorts (up 30.52%), and Shopping Centers (up 28.28%).

On a one-year basis through October 31, the FTSE NAREIT Equity REIT Index delivered a total return of 42.84% and the FTSE NAREIT All REITs Index delivered a return of 40.88% compared to 16.52% for the S&P 500.

The FTSE NAREIT Equity REIT Index has outpaced the S&P 500 for the past 1-, 3-, 5-, 10-, 15-, 20-, 25-, 30-, and 35-year periods. The REIT index delivered positive returns for eight of those nine periods and double-digit returns for seven of the nine periods, according to the news release

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