REITs Ahead Of Broader Equity Market In First Two Months Of 2016

Total returns of stock exchange-listed U.S. REITs fell in the first two months of 2016, but still outperformed the broader equity market. The FTSE NAREIT All REITs Index, the broadest benchmark of the listed U.S. REIT industry, including both Equity and Mortgage REITs, declined 3.76 percent in the year through February 29. The FTSE NAREIT All Equity REITs Index fell 3.93 percent in the first two months of the year, and the FTSE NAREIT Mortgage REITs Index fell 2.70 percent. In comparison, the S&P 500 Index fell 5.09 percent in the same period, and the S&P Composite 1500 which, like the REIT market, includes large-, mid-, and small-cap stocks, fell 5.04 percent.

REITs dividend yields at the end of the first two months of the year also stood above those of the broader market. The dividend yield of the FTSE NAREIT All REITs Index on February 29 was 4.51 percent, the dividend yield of the FTSE NAREIT All Equity REITs Index was 4.05 percent, and the FTSE NAREIT Mortgage REITs Index yielded 12.47 percent. The dividend yield of the S&P 500, in comparison, was 2.24 percent.

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