Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  What The Recovery In REITs Looks Like
Posted Under: Sectors
Supporting Image for Blog Post

 

View from the Observation Deck  

  1. The FTSE NAREIT All Equity REITs (Real Estate Investment Trusts) Total Return Index closed 7.48% below its all-time high on 8/14/15, according to Bloomberg.
  2. The index's all-time high was set on 1/26/15, an indication that equity REITs had fully recovered from the previous bear market, which ended in March 2009.
  3. Prior to the bear market, the all-time high had been set on 2/7/07. From 2/7/07 through 3/6/09, the FTSE NAREIT All Equity REITs Total Return Index plunged 73.18%, according to Bloomberg.
  4. The one niche of the REIT market that has yet to fully recover is mortgage REITs. On 8/14/15, the FTSE NAREIT Mortgage REITs Total Return Index closed 23.6% below its 2/7/07 mark, according to Bloomberg. 
  5. One of the most common concerns about investing in equity REITs is how they might perform in a rising interest rate climate. Research from The Street.com addressed that point. 
  6. It found that, from 1972 to 2013, equity REITs returned 16.77% annually in those periods when the Federal Reserve was lowering interest rates, compared to 9.77% annually when it was increasing interest rates.

This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. Each of the indices featured in the chart is a free float adjusted market capitalization-weighted index that includes all tax qualified REITs, for the broader all equity index as well as the various component sector indices, listed on the NYSE, AMEX and NASDAQ National Market.   

 To Download a PDF of this post, please click here.

Posted on Tuesday, August 18, 2015 @ 1:39 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Snapshot Of Bond Valuations
A Good Climate For Equity Covered Call Writing
The Equity Sectors Retail Investors Have Favored In The Bull Market Are…
Snapshot of U.S. Equity Styles/Market Caps
Health Care Has Momentum And The Earnings Projections To Back It Up
Profits Not Prophets
Rising Interest Rates And Stock Performance
The Stock Market Doesn’t Go Up In A Straight Line…Nor Do Earnings
The Biotechnology Sector Is Clearly Outperforming "Big Pharma"
Perspective on July Earnings
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.