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NEW YORK CITY-Dow Jones Indexes, a leading global index provider, and Wilshire Associates, a global leader in investment technology, investment consulting and investment management, added healthcare REITs to the Dow Jones Wilshire Global Real Estate and Dow Jones Wilshire Global Real Estate Securities Index. The change will become effective in September and applies to the US versions of the indexes as well.

To be added, a healthcare REIT must meet the Indexes’ minimum market capitalization requirement of $200 million. It must also derive more than 75% of its revenues from the ownership of income-producing real estate. Wilshire Associates were unable to be reached by press time.

Robert Waid, a VP of Wilshire Associates, who heads up Wilshire Equity Analytic’s research for the Dow Jones Wilshire Index family, tells GlobeSt.com that they have looked at healthcare REITs for sometime now. “About a year ago, I recommended that we add a healthcare REIT and now was just the right time,” he explains.

According to a company release, Dow Jones Indexes and Wilshire Associates agreed to the rules change allowing healthcare REITs into the Indexes at this time because these REITs perform more like other equity REITs than like healthcare stocks. When the Dow Jones Wilshire Real Estate Indexes were being developed in 1990 to 1991, healthcare REITs were greatly influenced by trends and developments in the healthcare industry, and were less affected by trends in the real-estate market, therefore they were deemed ineligible for the Indexes.

Today, by contrast, healthcare REITs are generally perceived as investors in real, somewhat specialized properties, rather than as adjuncts to the delivery of healthcare services and therefore their performance is affected more by trends in the real-estate market than health care field.

The rules change allowing these additions will become effective at the September 2007 quarterly shares and float review. Preliminary component changes that result from the quarterly review will be pre-announced after the close of trading on Sept. 7, and will become effective after the close of trading on Sept. 21.

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