WASHINGTON, DC-Continuing their fairy tale-like performance streak, REITs have posted an excellent half year, according to new figures from NAREIT. Essentially they have delivered a 10.6% return through June compared to 6% from the S&P 500. They have also raised $36 billion in new capital--much of which is being used for acquisitions.
According to NAREIT, in the first half of 2011, the FTSE NAREIT All REITs Index was up 9.93% and the FTSE NAREIT All Equity REITs Index was up 10.62% compared to 6.02% for the S&P 500. On a 12 month basis ended June 30, 2011, the FTSE NAREIT All REITs Index was up 32.86% and the FTSE NAREIT All Equity REITs Index was up 34.09% compared to the S&P 500’s 30.69% gain. REITs have also raised roughly $36 billion in new capital, which is being used for acquisitions.
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In many ways REITs’ strength is a reflection of the fact that investors in this current environment like the steady income streams, Michael Grupe, executive vice president, Research and Investor Outreach for NAREIT, tells GlobeSt.com. That the economy is growing even moderately, he says, is a positive for commercial real estate--another plus for REIT growth. “Still, though, fundamentals in the industry and in the economy have more room for improvement, which will be reflected in REITs’ ongoing growth as well,” he says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
