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

  

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June 2004

First week summary:
    For the first week of June week, the Office sector fell from a decrease of 0.43% to a 0.92% year to date decrease and since the start of Q2 is down 9.50% vs last weeks 9.06% decrease. Industrial sector prices rose from a 1.10% increase to a 1.18% increase and is down 9.67% [vs last week's 9.75%] since Q-1's end. The Apartment sector fell from a 1.10% gain to being flat for the year and is down 3.14% [vs last week's 2.11% loss] since Q-1's end. The yields for the week: Office - 6.27% vs 6.01% last week. Industrial - 5.44% vs 5.45% last week. Apartments - 6.46% vs 7.40% last week.
    The 10-year Treasury note closed Friday yielding 4.77% [vs 4.651% last week], the 30-year bond - 5.46% [5.344% last week], the five-year note - 3.95% [vs 3.80]. Nonfarm business payrolls grew 248,000 in May. Economists expected total job gains of 215,000 in May, while bond traders expected 255,000.

Second week summary:
    The Office sector fell from a decrease of 0.92% to a 1.41% year to date decrease and since the start of Q2 is down 9.96% vs last weeks 9.50% decrease. Industrial sector prices fell from a 1.18% increase to a 1.08% increase and is down 9.77% [vs last week's 9.67%] since Q-1's end. The Apartment sector rose from a flat to being up 0.17% for the year and is down 2.96% [vs last week's 3.14% loss] since Q-1's end. The yields for the week: Office - 6.30% vs 6.27% last week. Industrial - 5.45% vs 5.44% last week. Apartments - 6.44% vs 6.46% last week.
    The 10-year Treasury note closed Thursday [the market was closed Friday] yielding 4.798% [vs 4.77% last week]. The 30-year bond ended at 5.468% [5.46% last week]. The Dow ended the week up 1.6%, the S&P 500 index added 1.2%, the Nasdaq gained 1.1%, and the Russell 2000 ended the week up 0.2%.

Third week summary:
    The Office sector rose from a decrease of 1.41% to a 0.13% year to date decrease and since the start of Q2 is down 8.83% vs last weeks 9.96% decrease. Industrial sector prices rose from a 1.08% increase to a 2.20% increase and is down 8.80% [vs last week's 9.77%] since Q-1's end. The Apartment sector rose from a being up 0.17% for the year to a 1.84% increase and is down 1.35% [vs last week's 2.96% loss] since Q-1's end. The yields for the week: Office - 6.23% vs 6.30% last week [down 7 basis points]. Industrial - 5.38% vs 5.45% last week. Apartments - 6.33% vs 6.44% last week.
    For the week, the Dow edged up 0.06%, its fourth straight up week, while the S&P 500 dipped 0.13% and the Nasdaq fell 0.66%. In late trading, the 10-year Treasury note was yielding 4.71% [down 8.98 basis points]. The 30-year Treasury was yielding 5.38%. The five-year note was yielding 3.93%, while the three-year yielding 3.25%. The two-year was yielding 2.77%.

Fourth [long] week [or 10 day span] summary:
    Koger Equity (NYSE: KE) announced this week a name change to CRT Properties (NYSE:CRO) to be effective on or about July 1.
    The Office sector rose from a decrease of 0.13% to an increase of 1.41% year to date and since the start of Q2 is down 7.37% vs last weeks 8.83% decrease. Industrial sector prices rose from a 2.20% increase to a 4.23% increase year to date and is down 6.94% [vs last week's 8.80%] since Q-1's end. The Apartment sector rose from a being up 1.84% for the year to a 3.19% increase year to date and is down 0.04% [vs last week's 1.35% loss] since Q-1's end. The yields for the week: Office - 6.15% vs 6.23% on the 18th [down 8 basis points]. Industrial - 5.28% vs 5.38% on the 18th [down 10 basis points]. Apartments - 6.24% vs 6.33% on the 18th [down 9 basis points].
    In late trading, the 10-year Treasury note was yielding 4.60% [vs 4.71% on the 18th - down 11 basis points]. The 30-year Treasury was yielding 5.30%. The five-year note was yielding 3.78%, while the three-year yielding 3.10%. The two-year was yielding 2.70%.


Office Update for 6-30-04


Industrial Update for 6-30-04


Apartment Update for 6-30-04

    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: Although the tables above 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.

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    This months article updates are here.

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