A sector view of public market ownership of commercial real estate in the United States

From: Journal of Real Estate Portfolio Management | Date: September 1, 2002| Author: | Copyright information

Point of View

Introduction

For the second straight year, real estate investment trusts (REITs) outperformed the broader equity market in the United States by a wide margin in 2001 as investors sought refuge in stocks with relatively high, safe current yields and tangible assets. Equity REITs delivered total returns of nearly 14% in 2001, well ahead of the 7.4% total return for private real estate and the negative returns of most major market indices.1 However, with the exception of the office sector, the strong performance by REITs did not translate into an increase in their ownership share ...

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