U.S. REIT Industry Fact Sheet
August 2008
Data as of July 31, 2008, except where noted.
All data are derived from, and apply only to, publicly traded REITs and real estate operating companies.
Industry Size
- Total equity market capitalization = $300 billion
- Equity REIT market capitalization = $283 billion
- REITs own approximately $600 billion of commercial real estate assets, or 10 to 15 percent of total institutionally owned commercial real estate
- 146 REITs are in the FTSE NAREIT All REIT Index
- 125 REITs are traded on the New York Stock Exchange
- NYSE listed REITs equity market capitalization = $296 billion
- Commercial real estate industry represents a significant portion of the U.S. Economy
- 6.0 percent of GDP in 2006
- 6.5 percent of GDP growth over the 10 years ended 2006
Investment Performance
- As of July 31, the FTSE NAREIT All REIT Total Return Index was down 2.9 percent for the year. The FTSE NAREIT Equity REIT Total Return Index was down 0.3 percent over the same time period.
- Historical returns of the FTSE NAREIT All REIT Index:
| |
Cumulative Return in Percent |
| Time Period |
Total |
Price |
| December 2007 – July 2008 |
-2.87 |
-5.72 |
| December 2001 – July 2008 |
120.61 |
51.59 |
- Historical compound annual total returns of the FTSE NAREIT All REIT Index, FTSE NAREIT Equity REIT Index and leading U.S. benchmarks:
| |
FTSE NAREIT All REIT |
FTSE NAREIT Equity REIT |
S&P 500 |
Russell 2000 |
Nasdaq Composite1 |
Dow Jones Ind Avg1 |
| 1-Year |
-5.95
|
-3.08
|
-11.09
|
-6.71
|
-8.67
|
-13.88
|
| 3-Year |
1.27
|
3.78
|
2.85
|
2.92
|
2.10
|
2.26
|
| 5-Year |
11.61
|
13.89
|
7.03
|
9.75
|
6.03
|
4.26
|
| 10-Year |
10.64
|
11.78
|
2.91
|
6.81
|
2.19
|
2.51
|
| 15-Year |
10.90 |
11.63
|
9.19
|
9.09
|
8.28
|
8.10
|
| 20-Year |
9.93
|
11.56
|
10.41
|
9.73
|
9.38
|
8.74
|
| 25-Year |
9.90
|
12.30
|
11.37 |
9.13
|
8.48
|
9.42
|
| 30-Year |
11.80
|
13.89
|
12.12
|
NA |
10.20
|
8.98
|
| 35-Year |
10.48
|
13.28
|
10.77
|
NA |
9.15
|
7.43
|
1 Price only returns.
Highest total return for the period in bold.
Total returns expressed in percent.
Data for periods ending April 30, 2008.
Calendar Year Total Returns, Periods Ending December 2007:
| |
FTSE NAREIT All REIT |
FTSE NAREIT Equity REIT |
S&P 500 |
Russell 2000 |
Nasdaq Composite1 |
Dow Jones Ind Avg1 |
| 1-Year |
-17.83 |
-15.69 |
5.49 |
-1.57 |
9.81 |
6.43 |
| 3-Year |
6.13 |
8.50 |
8.62 |
6.80 |
6.83 |
7.15 |
| 5-Year |
16.64 |
18.17 |
12.83 |
16.25 |
14.71 |
9.72 |
| 10-Year |
9.63 |
10.49 |
5.91 |
7.08 |
5.38 |
5.31 |
| 15-Year |
12.33 |
13.02 |
10.49 |
10.10 |
9.53 |
9.72 |
| 20-Year |
10.86 |
12.31 |
11.81 |
11.34 |
10.97 |
10.09 |
| 25-Year |
10.73 |
13.17 |
12.73 |
10.79 |
10.23 |
10.69 |
| 30-Year |
12.01 |
14.15 |
12.95 |
NA |
11.36 |
9.67 |
| 35-Year |
10.26 |
13.16 |
10.97 |
NA |
8.91 |
7.60 |
1 Price only returns.
Highest total return for the period in bold.
Total returns expressed in percent.
Data for periods ending December 31, 2007.
Dividends
- The FTSE NAREIT All REIT Index dividend yield equals 5.8 percent, compared to the S&P 500 dividend yield of 2.3 percent.
- REITs paid out approximately $19.5 billion in dividends in 2007.
- On average, 55 percent of the annual dividends paid by REITs qualify as ordinary taxable income, 14 percent qualify as return of capital and 31 percent qualify as long-term capital gains.
Leverage and Coverage Ratios
Equity REITs
- Equity REIT debt ratio as of fourth quarter 2007 = 41.9 percent. The debt ratio is calculated by taking REITs’ total debt and dividing it by total market capitalization. Total capitalization equals the sum of total debt plus implied equity market capitalization (common shares plus operating partnership units).
- As of the fourth quarter 2007, the coverage ratio of EBITDA divided by interest expense for Equity REITs is 3.2. The fixed charge ratio of EBITDA divided by interest expense plus preferred dividends is 2.8.
- 42 Equity REITs are rated investment grade, 69 percent by equity market capitalization.
All REITs
- Debt ratio as of fourth quarter 2007 = 44.8 percent. The debt ratio is calculated by taking REITs’ total debt and dividing it by total market capitalization. Total capitalization equals the sum of total debt plus implied equity market capitalization (common shares plus operating partnership units).
- As of the fourth quarter 2007, the coverage ratio of EBITDA divided by interest expense for all REITs is 3.3. The fixed charge ratio of EBITDA divided by interest expense plus preferred dividends is 2.9.
- 43 REITs are rated investment grade, 65 percent by equity market capitalization.
Volume
- Average daily dollar trading volume, July 2008 = $4.6 billion
- Average daily dollar trading volume, July 2003 = $892 million
- Average daily dollar trading volume, July 1998 = $413 million
Capital Offerings
- REITs have raised $13.2 billion in initial, debt and equity capital offerings in 2008. $8.3 billion was raised in secondary equity common and preferred share offerings; $4.4 billion was raised in secured and unsecured debt offerings.
- Completed initial public offerings in 2008: -
- American Capital Agency Corporation (NASDAQ: AGNC)
- Hatteras Financial (NYSE: HTS)