FTSE Russell and NAREIT on June 8 announced changes to the ground rules and classification structure of the FTSE NAREIT U.S. Real Estate Index, including adjustments to reflect the growth of specialty REITs.

The newly created FTSE NAREIT Equity Specialty Index “will include those companies that mostly own, manage and lease assets primarily in a single property sector currently not part of the classification structure and that do not meet the 75 percent gross invested book assets threshold of any other property sector.” It will become part of the FTSE NAREIT Composite Index, the FTSE NAREIT All Equity REIT Index and the FTSE NAREIT Equity REIT Index.

Among other changes, the FTSE NAREIT Equity Industrial/Office Sector Index will be discontinued. Instead, the industrial and office subsectors are being promoted to their own sector indexes. Additionally, the FTSE NAREIT Equity Residential Index is gaining a single-family subsector.

All changes outlined in the announcement will take effect on Dec. 21.

(Contact: Abby McCarthy at amccarthy@nareit.com)

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