REITs Outperform Stocks Again
Real estate investment trusts (REITs) have outperformed the broad stock market for the last five consecutive years, and earlier predictions that this run would end in 2005 have proven wrong.
Real estate investment trusts (REITs) have outperformed the broad stock market for the last five consecutive years, and earlier predictions that this run would end in 2005 have proven wrong.
As of Tuesday's close of business, REITs have outperformed the Dow Jones Industrial Average by nearly 8 percentage points and the Standard & Poor's 500-stock index by about 6.7 percentage points.
REITs' continued strength can be linked to low interest rates, with investors flocking to the stocks due to their 5 percent average yield. Looking at the individual property sectors, apartment REITs have been improving as of late due to less construction.
Since the first of the year, apartment REITs have sold stakes in portfolios valued at over $2 billion to foreign and institutional investors.
Related Topics:
