Deals & People August 5, 2011

Westminster Consulting Hires Senior Research Associate

Westminster Consulting appointed Gabriel Potter as Senior Investment Research Associate.
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Potter comes to the firm with experience in investment manager due diligence, optimizing strategic and tactical asset allocations, and conducting and publishing market research. He most recently served as an Institutional Consulting Analyst with Graystone Consulting, the institutional business unit of Morgan Stanley Smith Barney.    

Potter earned his B.A. in Economics from the University of Rochester and an M.B.A. with concentrations in Corporate Finance and Computers & Information Systems from the University of Rochester’s William E. Simon School of Business. He holds the Series 7 and Series 66 licenses from the NASD, as well as the Accredited Investment Fiduciary designation from the Center of Fiduciary studies.

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The Markets August 5, 2011

REIT Returns Double That of Broader Equity Market in 2011

U.S. REIT total returns were more than double those of the broader equity market in the first seven months of 2011, according to the National Association of Real Estate Investment Trusts (NAREIT).
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The report also said U.S. REITs significantly outperformed the market in July. On a total return basis, the FTSE NAREIT All Equity REITs Index gained 11.79% and the FTSE NAREIT All REITs Index was up 10.36% for the first seven months of 2011 compared to 3.87% for the S&P 500. In July, the FTSE NAREIT All Equity REITs Index was up 1.05% and the FTSE NAREIT All REITs Index was up 0.39%, while the S&P 500 fell 2.03%.  

On a 12-month basis ended July 31, the FTSE NAREIT All Equity REITs Index was up 23.72% and the FTSE NAREIT All REITs Index was up 22.37%, while the S&P 500 was up 19.65%.  

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All but one of the major REIT market sectors achieved gains for the first seven months of the year, and most sectors delivered strong double-digit returns, the NAREIT report said. The Self-Storage sector topped other REIT market sectors in the first seven months of 2011 with a 19.54% gain. Among the primary REIT “food groups,” the Apartment sector led the way with a 19.50% return. The Office sector delivered a 13.59% return followed by the Retail sector, up 12.64%. Within the Retail sector, Regional Malls drove performance with an 18.41% gain. The Industrial sector was up 11.42% for the first seven months.  

For the 12 months ended July 31, the Industrial sector rewarded investors with a 45.13% return, followed by Apartments with a 36.37% return. Retail delivered a 29.13% return powered by the Regional Mall segment’s 36.16% return. The Office sector delivered a 20.56% return for the 12 months.   

REITs also continued to deliver strong yields for income-seeking investors. The dividend yield of the FTSE NAREIT All REITs Index was 4.44% and the yield of the FTSE NAREIT All Equity REITs Index was 3.43% at the end of July. The FTSE NAREIT Mortgage REITs Index’s dividend yield was 14.89%. By comparison, 10-year U.S. Treasury Notes yielded 2.80% at month-end.

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