WASHINGTON, DC-Every now and then talk arises that thismultifamily cycle has peaked—in development, in asset prices and inREIT valuations. To be sure, there is somesubstance to these fears. Multifamily REITs have returned slightlyless 10% year-to-date, compared with the 16% or more that REITs ingeneral have delivered.

Still, a number of indicators, both quantitative and anecdotal,suggest that the multifamily asset class is still a solid performeron many levels—as an acquisition target, as a development projectand as an equity holding.

First, its value as a REIT holding: SNLFinancial reports that multifamily REITs are the top interms of dividends. On a sector basis, 14multifamily real estate companies have raised dividendsyear-to-date through Sept. 6, making it the property sector withthe highest number of increases among North American real estatecompanies. The closest asset class was the hotel sector, with 10dividend increases, followed by the health care sector with eightdividend increases.