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

  

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Office
Industrial
Apartment
Retail
Mall
Health

NAREIT Index
  

Factoids
MLP Stats
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Prior REIT Updates
Aug 06
Aug Retail/HC
Aug Off/Ind/Apt

July 06
July Retail/HC
July Off/Ind/Apt

June 06
June Retail/HC
June Off/Ind/Apt

May 06
May Retail/HC
May Off/Ind/Apt

April 05
April Retail/HC
April Off/Ind/Apt

March 05
March Off/Ind/Apt
March Retail/HC

Feb 05
Feb Off/Ind/Apt
Feb Retail/HC

Jan 04
Jan Off/Ind/Apt
Jan Retail/HC

Dec 04
Dec Off/Ind/Apt
Dec Retail/HC

Nov 04
Nov Off/Ind/Apt
Nov Retail/HC

Oct 04
Oct Off/Ind/Apt
Oct Retail/HC

Sept 04
Sept Off/Ind/Apt
Sept Retail/HC

Aug 04
Aug Off/Ind/Apt
Aug Retail/HC

July 04
July Off/Ind/Apt
July Retail/HC

June 04
June Off/Ind/Apt
June Retail/HC

May 04
May Off/Ind/Apt
May Retail/HC

April Off/Ind/Apt
April Retail/HC
April 04

March Off/Ind/Apt
March Retail/HC
March 04

Feb Off/Ind/Apt
Feb Retail/HC
Feb 04

Jan Off/Ind/Apt
Jan Retail/HC
Jan 04

Dec Off/Ind/Apt
Dec Retail/HC
Dec 03
Nov Off/Ind/Apt
Nov Retail/HC
Nov 03
Oct Off/Ind/Apt
Oct Retail/HC
Oct 03
Sept Off/Ind/Apt
Sept Retail/HC
Sept 03
August Off/Ind/Apt
August Retail/HC
August 03
July Off/Ind/Apt
July Retail/HC
July 03

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September 2005

    The Shopping Center sector fell 0.18% in September to a gain year-to-date of 1.18% from August's gain of 2.00%. 05 FFO growth estimates ended September with a fall to 0.59% vs. August's fall of 0.49%. Yields rose 5 basis points to 5.06% from August's 5.01%. NAREIT's Shopping Center sector numbers [where large caps that are also the lower yielding components dominate NAREIT stats] was down 1.07% for the month with a 7.07% gain year-to-date and a yield of 4.52% vs. August's 8.23% year-to-date gain with a yield of 4.43% [a rise of 9 basis points].
    Based on the numbers from this site, the Shopping Center sector had a yield spread over the ten year treasury of 73 basis points at September's end, 99 points at August's end, 50 at July's end, 105 at June's end, 118 at May's end, and 115 at April's end.
    The Mall sector fell 3.22% in September to a year-to-date gain of 4.31% from August's gain of 7.61% gain year-to-date. 05 FFO growth estimates ended September with a rise to 3.93% vs. August's 3.85%. Yields rose 16 basis points to 4.42% from August's 4.26%. NAREIT's Mall sector numbers were down 2.08% for the month and up 14.36% year-to-date with a yield of 3.87% vs. August's 16.79% year-to-date gain with a yield of 3.79% [a rise of 8 basis points].
    The Health Care sector rose 3.51% in September [after having an atypically bad August in which the sector fell 6.81%] to a gain of 4.32% year to date from August's gain of 0.76%. 05 FFO growth estimates ended September with a fall to -1.96% vs. August's -2.01%. Yields fell 20 basis points to 6.22% from August's 6.42%. NAREIT's Health sector numbers: Up 1.26% for the month and up 7.22% year-to-date with a yield of 5.17% vs. August's 5.89% year-to-date increase with a yield of 6.10% [this data concerning the change in yield does not appear logical, but I have yet to find the error in it].
    The Hospitality sector fell 2.63% for the month to a year-to-date gain of .11% vs. August's 2.08% year to date performance. 05 FFO growth estimates ended September with a fall of 0.24% year-to-date vs. August's 0.28% RISE. Yields rose 16 basis points to 5.29% vs August's 5.13%. NAREIT's Lodging sector numbers: Down 1.50% for the month and up 2.96% year-to-date with a yield of 2.96% vs. August's 4.53% year-to-date increase with a yield of 3.70%. I only use REITs that are paying dividends in my stats - while NAREIT uses all Hospitality REITs - some of which are still not paying dividends. This explains the big difference in yields and some of the difference in price performance.
    During September, the Office sector rose 1.26% to a gain of 4.99% year-to-date from August's year-to-date gain of 3.70%. 05 FFO growth estimates ended September with a fall to -10.63% vs. August's fall of -10.86%. Yields fell 6 basis points to 5.45% from July's 5.51%. NAREITs Office sector numbers: Up 1.96% for the month and up 13.53% year to date [with a yield of 5.05%] vs. August's 11.35% gain and 5.07% yield [a fall of 2 basis points].
    There is a large difference between my numbers and NARIET's numbers -- but large caps BXP, EOP and VNO have done much better than average -- helping the cap weighted NAREIT index. At the same time small caps AFR, AMV, BED, GLD and PKY have fallen, dragging down the non-cap-weighted numbers.
    Based on the numbers from this site, the Office sector had a yield spread over the ten year treasury of 112 basis points at September's end, 113 points at August's end, 102 at July's end, 171 at June's end, 183 at May's end, and 170 at April's end. Improving fundamentals may justify the shrinking spreads -- but I can not help but feel uncomportable with spreads under 150.
    The Industrial sector rose 1.78% for the month, to a gain of 6.39% year-to-date from August's gain of 4.69% year-to-date. 05 FFO growth estimates ended September with a fall to -0.16% vs. August's fall of 0.25%. Yields fell 8 basis points to 4.31% from August's 4.39%. NAREIT's Industrial sector numbers: Up 0.40% for the month and up 6.12% year-to-date with a yield of 3.91% vs. August's 5.70% year-to-date increase and yield of 3.91%.
    The Apartment sector fell 0.73% for the month to a gain of 3.80% year to date from August's year-to-date gain of 4.50%. 05 FFO growth estimates ended September rising to 0.08% vs. August's rise of 0.06%. Yields rose 5 basis points to 5.10% from August's 5.05%. NAREIT's Apartment sector numbers: Up 1.28% for the month and up 9.54% year-to-date with a yield of 4.67% vs. August's 8.16% year-to-date rise with a yield of 4.70% [a fall of 3 basis points].
    In the three other equity income segments followed by this site, Pipeline MLPs were up 0.51% for the month and up 10.28% year-to-date [vs being up 9.90% at August's end] and had a distribution yield of 6.07% [vs. 6.10% in August] - a fall of 3 basis points. During September, large-cap banks fell 2.74% to a loss of 8.75% year to date, from August's loss of 6.20% and yields rose 13 basis points to 3.84% from August's 3.71%. Mid-cap banks fell 2.86% to a year-to-date loss of 5.44% from August's loss of 2.71% and yields ended at 3.55% [vs. August's 3.44% - a rise of 11 basis points]. The ten year treasury ended the month at 4.33% [vs 4.02% on 8-31 - a rise of 31 basis points].

Office Update for 9-30-05

Industrial Update for 9-30-05

Apartment Update for 9-30-05

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. And even accurately replicated and freshly retrieved FFO numbers are often stale.

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

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