REITs Outperform S&P 500 in 2003

CHARLOTTESVILLE, VA-SNL Financial LC has revealed that 2003 turned out to be a banner for year REITs. According to the firm’s SNL Equity REIT Index, REITs brought in their highest total returns in well over a decade at 37.5%. Last year also ended with REITs having outperformed the S&P 500 Index for the third straight year.

As it turned out in 2003, healthcare REITs led the pack in returns with 56%, followed by retail REITs, which closed the year at 47.5%. Investor sentiment and the resolution of certain issues surrounding Medicare payment helped put the healthcare sector at the top, while enclosed mall properties kept the retail sector well above water. Office REITs were successful as well, returning a total of 33.4%, and multifamily REITs returned a total of 25.6%.