Returns for US real estate investment trusts (REITS) are still on an “upward path” following a bottoming of the market, a national association says.
REITS continue to “greatly exceed” the performance of the broader property market, the National Association of REITS (NAREIT) said.
The FTSE NAREIT Equity REIT Index is up 1.76 percent for the year to September 30, according to the association, suggesting the sector is not currently seeing adverse effects from trouble in other markets.
“Several equity REIT sectors have posted strong returns in 2008, led by double-digit gains in the self storage, health care, residential and specialist sectors.”
REIT is a designation which is granted special tax allowances and means investors can stake money on property in a similar way to speculating on company stocks and shares.
NAREIT represents American REITs and publicly-traded real estate companies.
Besides REITs, Members of the group include other firms that own, run and finance income-producing real estate.
According to the association, US REITs have seen their equity market capitalization rise from $90 billion to more than $300 billion over the past decade.