Real Estate Investment Trust Update
REIT Valuation & Returns for Retail, Mall, Health Care & Hospitality Sectors

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June 05
June Off/Ind/Apt
June Retail/Hlth Care

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April 04
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March 04
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Jan 04
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July 2005

Monthly Sector Summary     The Shopping Center sector rose 4.29% in July to a gain year-to-date of 6.53% from June's gain of 2.10%. 05 FFO growth estimates ended June with a fall to -0.55% vs. June's rise of 0.40%. Yields fell 18 basis points to 4.78% from June's 4.96%. NaREITs Shopping Center sector numbers [where large caps were big gainers and low yielders] was up 6.51% for the month with a 11.76% gain year-to-date and a yield of 3.95% vs. June's 4.93% year-to-date gain with a yield of 4.53% [a fall of 58 basis points].
    The Mall sector rose 6.91% in July to a year-to-date gain of 15.33% from June's gain of 7.18% gain year-to-date. 05 FFO growth estimates ended June with a rise to 3.43% vs. June's 1.50%. Yields fell 7 basis points to 3.95% from May's 4.02%. NaREITs Mall sector numbers were up 9.04% for the month and up 22.70% year-to-date with a yield of 3.58% vs. June's 12.52% year-to-date gain with a yield of 3.91% [a fall of 33 basis points].
    The Health Care sector rose 5.27% in July to a gain of 8.2% year to date from June's gain of 2.97%. 05 FFO growth estimates ended June with a fall to -2.95% vs. June's -2.49%. Yields fell 30 basis points to 5.79% from June's 6.09%. NaREITs Health sector numbers: Up 5.54% for the month and 9.83% year-to-date with a yield of 5.89% vs June's 4.06% year-to-date increase with a yield of 6.15% [a fall of 26 basis points].
    The Hospitality sector rose 5.84% for the month to a year-to-date gain of 5.05% vs. June's -0.64% year to date performance. 05 FFO growth estimates ended June with a rise to 0.37% year-to-date vs June's 0.31%. Yields fell 30 basis points to 5.02% vs June's 5.32% . NaREITs Lodging sector numbers: Up 5.53% for the month and up 9.83% year-to-date with a yield of 3.57% vs June's 2.66% year-to-date increase with a yield of 3.20%.
    The changes in year-to-date returns and yields were skewed upwards in the Office sector by the purchase of CRO by non-REIT DRA Advisors, in the Industrial sector by the purchase of CDX by PLD, and in the Apartment sector by the purchase of GLB by an investment division of non-REIT ING.
    During July, the year-to-date Office sector rose 6.64% to a gain of 7.14% year to date from June's year to date gain of 0.49%. 05 FFO growth estimates ended June with a fall to -5.24% vs. June's fall of -3.91%. Yields fell 32 basis points to 5.30% from June's 5.62%. NaREITs Office sector numbers: Up 7.07% for the month and 16.11% year to date [with a yield of 4.86%] vs. June's 8.44% gain.
    The Industrial sector rose to a gain of 7.85% year to date [up 6.26% in July alone] from June's gain of 1.53% year to date. 05 FFO growth estimates ended June with a fall to -0.68% vs. June's fall of 0.68%. Yields fell 24 basis points to 4.24% from June's 4.48%. NaREITs Induistrial sector numbers: Up 9.10% for the month and 9.58% year-to-date with a yield of 3.76% vs. June's 0.45% year-to-date increase with a yield of 4.08%.
    The year-to-date Apartment sector rose 6.51% for the month to a gain of 10.74% year to date from June's gain of 4.05%. 05 FFO growth estimates ended June rising to 0.38% vs. June's rise of 0.28%. Yields fell 29 basis points to 4.75% from June's 5.04%. NaREITs Apartment sector numbers: Up 8.09% for the month and 14.48% year-to-date with a yield of 4.42% vs. June's 5.19% year-to-date rise with a yield of 4.75% [a fall of 44 basis points].
    In the three other equity income segments followed by this site, Pipeline MLPs were up 14.20% year-to-date [vs being up 7.79% at June's end] and had a distribution yield of 5.87% [vs 6.03% in June - most MLPs rose their distribution during the month] - a fall of 16 basis points. During July, large-cap banks rose 1.48% to a loss of 4.65% from June's loss of 5.96% and yields fell 4 basis point to 3.54% from June's 3.58%. Mid-cap banks rose 4.13% to a year-to-date gain of 0.13% from June's loss of 3.78% and yields ended at 3.32% [vs June's 3.46% - a fall of 14 basis points]. The ten year treasury ended the month at 4.28% [vs 3.91% on 6-30 - a rise of 37 basis points].
    In July the Dow Jones industrial average rose 3.56%, the Standard & Poor's 500 index climbed 3.6% and the Nasdaq composite index gained 6.22%. (Michael Martinez, AP 7-31)

Shopping Center [and Other Retail] Update for 7-29-05

Mall Update for 7-29-05

Health Care Update for 7-29-05

Hospitality Update for 7-29-05

Click here for the Office, Industrial and Apartment Updates. Click here for this months articles.


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