U.S. real estate investment trusts (REITs) outperformed the broader equity market in the second quarter and the first half of this year, according to new data from the National Association of Real Estate Investment Trusts (NAREIT).
According to NAREIT, the U.S. REIT industry's total equity market capitalization was $455 billion at June 30, up 17% from $389 billion at Dec. 31, 2010. The average daily dollar trading volume was $4.6 billion in June, compared with $3.4 billion in December 2010.
Publicly traded REITs raised $36.02 billion in 108 secondary equity and debt offerings and five initial public offerings (IPOs) in the first half of the year, says NAREIT. Among the larger REIT market sectors, apartments led with a 14.11% total return in the first half of this year, while the office sector was up 12.5%, the industrial sector was up 11.03% and the retail sector was up 10.34%.
‘The consistently strong REIT dividend is a critical driver of REITs' total return performance,’ says Steven Wechsler, NAREIT president and CEO. ‘Over longer holding periods, dividends have accounted for more than 60 percent of the total returns to REIT shareholders. Their proven ability to provide reliable income has made REITs a key element of the investment strategies of both younger investors who are building portfolios and retirees who are relying on them to meet their expenses.’
