FTSE NAREIT REIT Indexes Outperform S&P 500 Over First Seven Months Of 2012


Reportedly, the FTSE NAREIT ALL REITS Index returned 2.3% and the FTSE NAREIT ALL Equity REITS Index 2.17% in July against the S&P’s 1.39%. The first seven months of 2012 showed the FTSE NAREIT ALL REITs Index up 18.08%, the FTSE NAREIT ALL Equity REITs Index up 17.4%, and the S&P 500 up 11.01%.

The REITs indexes also beat S&P 500 returns over the most recent 12-month period. The retail REIT sector gave the highest total return of 23.57% with regional malls leading the way. Industrial REITs were up 16.54%, office REITs up 13.79%, and apartments up 13.3%.
Healthcare REITs were up 19.81% and timber REITs were up 18.31%. Retail investors looking for income received dividend yields of 4.16% on the FTSE NAREIT ALL REITS Index through July 31 and of 3.23% on the FTSE NAREIT ALL Equity REITS Index.
REITs may be a reasonable income producing alternative for clients who can manage the risks present in the different REIT sectors. Combining income sources from different high-risk investments such as REITs, junk bonds, and emerging markets bonds may further diversify risk over an income producing portfolio.


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