Real Estate Investment Trust Update
REIT Valuation Stats for Office, Industrial & Aparment Sectors

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April 2004

First week summary:
    The REIT sector ended March with strong year to date gains. Then along came April and rising rates on the ten year treasury. The benchmark 10-year Treasury note, which was at 3.83% on the 29th of March, now yields 4.193%. The 30-year Treasury note yields 5.027% [vs 4.76% on 3-29]. The 5-year Treasury note yields 3.217% [vs 2.78% on 3-29].
    The Office sector fell from an increase of 8.96% to 1.63% year to date during the first eight days of April and is down 6.67% since Q-1's end. The Industrial sector prices fell from a 12.02% increase to 3.51% price gain and is down 7.60% since Q-1's end. The Apartment sector fell from a 3.24% gain to a 2.42% loss and is down 5.47% since Q-1's end.

Second week summary:
    The Office sector fell from an increase of 1.63% to a decrease of 1.86% year to date during the second week of April and is down 9.81% [vs last week's 6.67%] since Q-1's end. The Industrial sector prices fell from a 3.51% increase to a 1.27% decrease and is down 11.88% [vs last week's 7.60%] since Q-1's end. The Apartment sector fell from a 2.42% loss to a 4.52% loss year to date and is down 7.48% [vs last week's 5.47%] since Q-1's end.

Third week summary:
    The Office sector fell from a year to date decrease of 1.86% to a decrease of 4.32% during the third week of April and is down 12.07% [vs last week's 9.81%] since Q-1's end. The Industrial sector prices fell from a 1.27% decrease to a 3.59% decrease and is down 13.92% [vs last week's 11.88%] since Q-1's end. The Apartment sector fell from a 4.52% loss to a 6.04% loss year to date and is down 8.95% [vs last week's 7.48%] since Q-1's end.
    The Officer sector now has an average yield of 6.65% [vs 6.48% last week]. The Industrial sector average yield is now 5.73% [vs 5.58% last week]. The Apartment sector average yield is now 6.84% [vs 6.73% last week].
    In late trading Friday, the 10-year Treasury note stood at a yield of 4.46%. The 30-year Treasury was yielding 5.24%. The five-year price was at a yield of 3.56%, while the three-year was yielding 2.70%. For the week, the Dow rose 0.2%, the Nasdaq climbed 2.7% and the S&P 500-stock index moved up 0.5%.

Fourth week summary:
    The Office sector fell from a year to date decrease of 4.32% to a decrease of 4.32% during the third week of April and is down 12.07% [vs last week's 12.07%] since Q-1's end. The Industrial sector prices fell from a 3.59% decrease to a 3.59% decrease and is down 13.92% [vs last week's 13.92%] since Q-1's end. The Apartment sector fell from a 6.04% loss to a 6.04% loss year to date and is down 8.95% [vs last week's 8.95%] since Q-1's end.
    The Officer sector now has an average yield of 6.65% [vs 6.65% last week]. The Industrial sector average yield is now 5.73% [vs 5.73% last week]. The Apartment sector average yield is now 6.84% [vs 6.84% last week]. Office FFO and rating data updated on 4-30.
    The 10-year note's yield rose to 4.534% [It was yielding 4.4% at the start of the year]. The 30-year bond was yielding 5.315%. Reports that should have a conflicting influence on bonds came out this week. GDP grew at a slower-than-expected 4.2% in Q1. But an inflation gauge called the price index for personal consumption, jumped to a 3.2% rate in Q1 from 1% in Q4. The employment-cost index rose at a quarterly rate of 1.1%, up from 0.8% in Q4.


Office Update for 4-30-04


Industrial Update for 4-30-04


Apartment Update for 4-30-04

    NOTE 1: ASN's 02 FFO had to be estimated (and estimated to reflect an average decrease compared to 03) due to the fact that ASN prefers to use EPS - and I could not find the number in their press releases or annual statements.

    NOTE 2: TCT now has an analyst that is making FFO forecasts. So its 04 FFO estimate changed from $2.08 [my estimate] to $2.04 - but it would be incorrect to say that its estimate was lowered or that its outlook changed.


NOTE: Although the tables below are checked and double-checked for accuracy, and may at times be 100% accurate - do NOT count on that. Please confirm through your own research any numbers on which you are to make a buy, sell or hold decision. Most sites giving this kind of data would say that it's information is for entertainment purposes only. I will not presume that you are that masochistic. I try to be accurate, but I randomly fail. And even accurately replicated and freshly retrieved FFO numbers are often stale.
    The Price to Revenue INDEX figures, due to rounding errors, are not accurate to 3 digits. They are darn close to accurate. Javascript is expected to be accurate to 5 digits when the calculation is simply x times y. But the complexity of the formula - or a large number of calculations to determine a result - can decrease the number of digits of accuracy.

    Click here for the Shopping Center, Mall, and Health Care Update page.
    This months article updates are here.

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