- January 1, 2015: Vol. 27, Number 1

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U.S. REITs triple yield earned by private real estate

by Mike Consol


The people at NAREIT love to brag about the financial superiority of investing in publicly traded real estate rather than private real estate. They are making one heck of a case this year.

Total returns from U.S. REITs are 26 percent year-to-date through Nov. 28, about triple those on the private real estate indices compiled by NCREIF, which show total year-to-date returns through Sept. 30 of 8.99 percent on its ODCE Index and 8.51 percent on its NCREIF Property Index, both well below NAREIT returns for listed real estate.

More specifically, the FTSE NAREIT All REITs Index was up 25.77 percent with a dividend yield of 3.90 percent as of Nov. 28 — about double the S&P 500 Index’s total return of 13.98 percent and dividend yield of 1.96 percent as of Nov. 28.

As though the raw numerical comparison was not convincing enough, NAREIT issued a news release that read: “At a time when some pension funds are re-examining their investment strategie

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