REIT Returns Rule in April

The FTSE/NAREIT Equity REIT (real estate investment trust) Index was up 5.11 percent in April, up 13.00 percent through April 30th, and pays a 3.29 percent dividend, too. All 13 property sector sub-indices were positive in April, ranging from the leaders—office/industrial (+7.38 percent), regional malls (+7.15 percent), and diversified (+6.91 percent)—to the laggards—industrial (+2.13 percent), timber (+2.29 percent), and freestanding retail (+2.95 percent). Read about the year-to-date basis leaders and laggards.

May 10, 2011

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The FTSE/NAREITEquity REIT (real estate investment trust) Index was up 5.11 percent in April, up 13.00 percent through April 30, and pays a 3.29 percent dividend, too.

All 13 property sector sub-indices were positive in April, ranging from the leaders—office/industrial (+7.38 percent), regional malls (+7.15 percent), and diversified (+6.91 percent) —to the laggards—industrial (+2.13 percent), timber (+2.29 percent), and freestanding retail (+2.95 percent).

On a year-to-date basis, leaders include timber (+21.50 percent), self-storage (+17.73 percent), and office (+15.01 percent); laggards include freestanding retail (+1.79 percent), hotels (+2.54 percent), and neighborhood/community shopping centers (+9.50 percent).

REITs’ continuing attractiveness to institutional and individual investors stems from a wide array of reasons ranging from their attractive dividends versus those of alternative investments, their perceived ability to provide a hedge against inflation, and their ability to access the public and private equity and debt capital markets, thereby taking advantage of acquisition opportunities in an improving real estate economy.

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Stephen Blank

Stephen R. Blank joined ULI in December 1998 as Senior Fellow, Finance. His primary responsibilities include: expanding ULI’s real estate capital markets information and education programs; authoring real estate capital market commentary; participating as a principal researcher and adviser for the Emerging Trends in Real Estate series of publications; organizing and participating in real estate capital markets programs at ULI events worldwide; and participating in industry meetings, seminars, and conferences. Prior to joining ULI, Blank served from December 1993 to November 1998 as Managing Director, Real Estate Investment Banking of Oppenheimer & Co., Inc. His responsibilities included: structuring, underwriting, and executing corporate financings including initial public offerings of common and preferred shares, unsecured debentures, and convertible bonds; property acquisitions, dispositions, and financing; and financial advisory services including mergers and acquisitions, corporate restructurings, and recapitalizations.