Performance of U.S. REITs Outpaced Markets

Data from the National Association of Real Estate Investment Trusts (NAREIT), show that on a total return basis, the FTSE NAREIT All Equity REITs Index gained 14.13% and the FTSE NAREIT All REITs Index was up 12.96% for the first five months of 2011, compared to 7.82% for the S&P 500. On a 12-month basis ended May 31, REITs strongly outperformed the S&P 500, with the FTSE NAREIT All Equity REITs Index up 31.40% and the FTSE NAREIT All REITs Index up 30.33% compared to the S&P 500’s 25.95%.  

The Self-Storage sector topped other REIT market sectors in the first five months of 2011 with an 18.40% gain. Among the primary REIT “food groups,” the Office sector led the way with a 17.81% return. Apartments delivered a 16.88% return followed by the Industrial sector, up 16.07%, and the Retail sector, up 12.97%. Within the Retail sector, Regional Malls drove performance with a 17.58% gain.  

The NAREIT data show that for the 12 months ended May 31, the Industrial sector rewarded investors with a 45.62% return, followed by Apartments with a 38.70% return. Retail delivered a 34.50% return powered by the Regional Mall segment’s 39.71% return. The Office sector delivered a 29.26% return for the 12 months.