take a long-term view of
WASHINGTON, DC-REITs continue to outperform the larger equity market, according to new NAREIT figures. However, recent metrics show that they are only barely outperforming the S&P 500.
On a total return basis, the FTSE NAREIT All REITs Index gained 2.61% and the FTSE NAREIT All Equity REITs Index was up 3.33% through the first 11 months of 2011. The increase for the S&P 500 was 1.08%.
However, on a 12-month basis ended November 30, the total return of the FTSE NAREIT All REITs Index was up 7.4% and the FTSE NAREIT All Equity REITs Index was up 8.14%, while the S&P 500 was up 7.83%.
Such fluctuations are to be expected, Brad Case, NAREIT’s senior vice president for research and industry information, told GlobeSt.com in an earlier interview. The third quarter, for example, was unusually rocky for REITs–and the economy as a whole. Better, he says, to take a long-term view of REITs’ performance. “Five years, ten years–they have outperformed,” he says. “This may have been a lost decade for stocks but not for REITs.”
Such fluctuations, of course, translate differently for different asset classes. Self storage, for instance, has been performing well all year. On a year-to-date basis, it was the top-performing market sector, with a 31.62% total return. On a 12-month basis, it also was the top-performing market sector with a 40.01% total return.
On a YTD basis, apartments delivered an 8.83% return; retail was up 8.09%; the office sector was down 4.4%; and the industrial sector was down 9.23%. On a 12-month basis, apartments delivered a 13.46% return; retail was up 11.46%; the office sector was up 0.06%; and the industrial sector was down 0.22%.