Despite hitting a trough in February, the FTSE NAREIT All REIT Index has soundly outperformed other major market benchmarks so far in 2008, according to the National Association of Real Estate Investment Trusts.
Washington, D.C. (Vocus) June 10, 2008 -- Despite hitting a trough in February, the FTSE NAREIT All REIT Index has soundly outperformed other major market benchmarks so far in 2008, according to the National Association of Real Estate Investment Trusts (NAREIT). Consider the following points:
- Through the first five months of 2008, the FTSE NAREIT All REIT Index was up 6.46 percent, while the FTSE NAREIT Equity REIT Index was up 8.17 percent, as other market benchmarks remained in negative territory to start the year (the NASDAQ Composite down 4.89 percent, the Dow Jones Industrials down 4.72 percent, the S&P 500 down 3.80 percent, and the Russell 2000 down 1.81 percent).
- For the year, Self-Storage (up 21.09 percent), Residential (up 15.60 percent) and Diversified (up 12.49 percent) remained the industry’s top-performing sectors.
In addition, the REIT downturn of 2007 and early 2008 mirrored the duration and severity of the downturn in 1989-1990. Having reached a trough in February, the REIT market has steadily risen the past three months.
- 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 19.1 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 site at REIT.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.
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