After trailing the broader market in each of the last three quarters of 2007, the FTSE NAREIT All REIT Index soundly outperformed other major market benchmarks in the first quarter of 2008, according to the National Association of Real Estate Investment Trusts.
Washington, D.C. (Vocus/PRWeb) April 2, 2008 -- After trailing the broader market in each of the last three quarters of 2007, the FTSE NAREIT All REIT Index soundly outperformed other major market benchmarks in the first quarter of 2008, according to the National Association of Real Estate Investment Trusts (NAREIT). Consider the following points:
- The total return of the U.S. REIT market was nearly flat for the first quarter of 2008 (the FTSE NAREIT All REIT Index was down 0.42 percent, while the FTSE NAREIT Equity REIT Index was up 1.40 percent), as other market benchmarks dove into negative territory to start the year (the Dow Jones Industrials down 7.55 percent, the S&P 500 down 9.44 percent, the Russell 2000 down 9.90 percent, and the NASDAQ Composite down 14.07 percent).
- REIT performance accelerated in March, as the FTSE NAREIT All REIT Index was up 3.88 percent in the month.
Leading the REIT market advance in the first quarter are two sectors that were among the hardest hit last year, Self Storage and Residential.
- In the three-month period ending March 31, 2008, the Self Storage sector far-and-away exceeded the performance of any other REIT sector, with a 20.23 percent total return. The second-best performing sector was Residential, up 11.20 percent in the first quarter.
- In sharp contrast, both of those sectors trailed the overall REIT market’s performance in 2007.
- All other equity REIT sectors (excluding hotels) were up in March, after reaching troughs in February, two months after residential and self storage hit their bottoms.
In addition, in terms of severity, the current downturn in REIT share prices matched those of the two previous REIT downturns in February, and the index has since advanced.
- In the two most recent downturns (see charts on the next two pages), REITs dropped 28.2 percent and 26.3 percent, respectively. The peak-to-trough duration was 14 months and 23 months, respectively.
- The current REIT slide began at the end of January 2007, and March 31 marked the 14-month point. From Jan. 31, 2007 to Feb. 29, 2008, the FTSE NAREIT All REIT Index was down 27 percent. It has since recovered so that the cumulative decline since the peak is 24.1 percent.
The National Association of Real Estate Investment Trusts® (NAREIT) is the representative voice for U.S. REITs and publicly traded real estate companies worldwide. Members are real estate investment trusts (REITs) and other businesses that own, operate and finance income-producing real estate, as well as those firms and individuals who advise, study and service those businesses. Visit our Web sites at www.nareit.com and www.investinreits.com.
NAREIT does not intend this press release to be a solicitation related to any particular company, nor does it intend to provide investment, legal or tax advice. Investors should consult with their own investment, legal or tax advisers regarding the appropriateness of investing in any of the securities or investment strategies discussed in this publication. Nothing herein should be construed to be an endorsement by NAREIT of any specific company or products or as an offer to sell or a solicitation to buy any security or other financial instrument or to participate in any trading strategy. NAREIT expressly disclaims any liability for the accuracy, timeliness or completeness of data in this publication. Unless otherwise indicated, all data are derived from, and apply only to, publicly traded securities. Any investment returns or performance data (past, hypothetical, or otherwise) are not necessarily indicative of future returns or performance.
Contact: Ron Kuykendall
or Matt Bechard
(202) 739-9400
1-800-3NAREIT
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