More data points indicate REITs may be approaching their bottom and that REIT stocks offer superior value for investors, according to the National Association of Real Estate Investment Trusts (NAREIT).

Washington, D.C. (PRWEB) February 11, 2008 -- More data points indicate REITs may be approaching their bottom and that REIT stocks offer superior value for investors, according to the National Association of Real Estate Investment Trusts (NAREIT). Consider the following points:


- In the 12-month period ending Jan. 31, 2008, REITs delivered a negative 24.03 percent total return. In the two most recent downturns (see charts on the next two pages), REITs dropped 23.79 percent and 23.9 percent, respectively. The peak-to-trough duration was 23 months and 14 months, respectively.
- The FTSE NAREIT All REIT Index yield at Jan. 31, 2008 was 5.32 percent, up from 3.78 percent on Jan. 31, 2007 and 168 basis points above Treasuries.
- REITs typically precede the direct real estate market on the way down and on the way back up. A new transaction-based index report from the MIT Center for Real Estate shows the value of commercial properties owned by large pension funds declined 5 percent in 2007’s fourth quarter.

In addition, REIT shares enjoyed a strong rebound in the first month of this year, according to NAREIT data.

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