REITWatch. A Monthly Statistical Report on the Real Estate Investment Trust Industry

Transcription

1 REITWatch NAREIT A Monthly Statistical Report on the Real Estate Investment Trust Industry June 2017 (Data as of May 31, 2017) National Association of Real Estate Investment Trusts REITs: Building Dividends & Diversification

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3 NAREIT Disclaimer NAREIT does not intend this publication to be a solicitation related to any particular company, nor does it intend to provide investment, legal or tax advice. Investors should consult with their own investment, legal or tax advisers regarding the appropriateness of investing in any of the securities or investment strategies discussed in this publication. Nothing herein should be construed to be an endorsement by NAREIT of any specific company or products or as an offer to sell or a solicitation to buy any security or other financial instrument or to participate in any trading strategy. NAREIT expressly disclaims any liability for the accuracy, timeliness or completeness of data in this publication. Unless otherwise indicated, all data are derived from, and apply only to, publicly traded securities. Any investment returns or performance data (past, hypothetical or otherwise) are not necessarily indicative of future returns or performance. Copyright 2017 by NAREIT. NAREIT and REITWatch are the exclusive registered marks of the National Association of Real Estate Investment Trusts. Please direct all questions or comments to John Barwick, Senior Director, Industry Information & Statistics, NAREIT.

4 REITWATCH TABLE OF CONTENTS I. Indicators of US REIT Investment Performance REIT Industry Fact Sheet... 1 Investment Performance of the FTSE NAREIT US Real Estate Index Series... 3 Investment Performance by Property Sector and Subsector... 4 Selected Indicators of Equity Market Performance... 5 Historical Offerings of REIT Securities... 6 FTSE NAREIT Equity REITs Dividend Yield vs. 10-Year Constant Maturity Treasury... 7 FTSE NAREIT Equity REITs Dividend Yield Spread... 7 Major Stock Total Return Indexes... 8 Average Daily Dollar Trading Volume... 9 Comparative Total Return Investment Performance Comparative Total Return Investment Correlations Year Average Annual Total Returns Adjusted 20-Year Average Annual Total Returns Year Average Annual Total Return vs. 20-Year Standard Deviation of Annual Total Return. 13 FTSE NAREIT All Equity REITs Return Components S&P 500 Return Components Wilshire 5000 Return Components Annual Price and Total Returns by Investment Sector Annual Price and Total Returns by Property Sector Annual Price and Total Returns by Property Subsector Annual Equity Market Capitalization REITs in the FTSE NAREIT All REIT Index and S&P Equity Indexes Mergers & Acquisitions Activity II. US REIT Performance Statistics by Property Sector and Subsector Industrial/Office Office Industrial Mixed Retail Shopping Centers Regional Malls Free Standing Residential Apartments Manufactured Homes Diversified Health Care Lodging/Resorts Self Storage Timber Mortgage Home Financing Commercial Financing

5 III. Indicators of US REIT Industry Activity REIT Payout Ratios: Dividend as a Percent of Funds from Operations REIT Dividends and Funds from Operations by Property Sector/Subsector US REIT Industry Balance Sheet Summary of REIT Financial Leverage IV. Indicators of Global Real Estate Investment Performance FTSE EPRA/NAREIT Global Real Estate Index Series Investment Performance V. Glossary of REITWatch Terms

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7 National Association of Real Estate Investment Trusts REIT Industry Fact Sheet Data as of May 31, 2017, except where noted. Unless otherwise noted, all data are derived from, and apply only to, publicly traded US REITs. Industry Size FTSE NAREIT All REITs equity market capitalization = $1.073 trillion FTSE NAREIT All Equity REITs equity market capitalization = $985.1 billion REITs own approximately $1.8 trillion of commercial real estate assets, including listed and non-listed public Equity and Mortgage REITs 224 REITs are in the FTSE NAREIT All REITs Index 191 REITs trade on the New York Stock Exchange NYSE listed REITs equity market capitalization = $968.5 billion Investment Performance Year-to-date and compound annual total returns of the FTSE NAREIT All REITs Index, the FTSE NAREIT All Equity REITs Index, and leading US benchmarks for periods ending May 31, 2017: FTSE NAREIT Dow Jones All REITs All Equity REITs S&P 500 Russell 2000 NASDAQ Composite Industrial Average 2017: YTD Year Year Year Year Year Year Year Year Year Year Data in percent; highest return for the period in bold. Returns in italics are price-only. Dividends Yield Comparison - FTSE NAREIT All REITs: 4.16% - FTSE NAREIT All Equity REITs: 3.87% - S&P 500: 1.99% Public listed REITs paid out approximately $55.7 billion and public non-listed REITs paid out approximately $4.4 billion in dividends during On average, 59 percent of the annual dividends paid by REITs qualify as ordinary taxable income, 17 percent qualify as return of capital and 24 percent qualify as long-term capital gains. 1

8 National Association of Real Estate Investment Trusts REIT Industry Fact Sheet Data as of May 31, 2017, except where noted. Unless otherwise noted, all data are derived from, and apply only to, publicly traded US REITs. Leverage and Coverage Ratios (Data as of 2017: Q1) Equity REITs All REITs Debt Ratio: 31.5% Coverage Ratio: 4.7x Fixed Charge Ratio: 4.4x 67 Equity REITs are rated investment grade, 67 percent by equity market capitalization. Debt Ratio: 41.1% Coverage Ratio: 4.6x Fixed Charge Ratio: 4.3x 67 REITs are rated investment grade, 63 percent by equity market capitalization. - Debt ratio equals total debt divided by total market capitalization. Total market capitalization is the sum of total debt and implied equity market capitalization (common shares plus operating partnership units). - Coverage ratio equals EBITDA divided by interest expense. - Fixed charge ratio equals EBITDA divided by interest expense plus preferred dividends. Average Daily Dollar Trading Volume May 2017: $7.8 billion May 2012: $4.0 billion May 2007: $3.8 billion Capital Offerings IPOs Secondary Common Secondary Preferred Secondary Debt Number of Offerings 2017: YTD Capital Raised ($M) 4 2, , , ,424 Total ,987 2

9 Exhibit 1 Investment Performance: FTSE NAREIT US Real Estate Index Series May 31, 2017 FTSE NAREIT All REITs FTSE NAREIT Composite FTSE NAREIT Real Estate 50 1 FTSE NAREIT All Equity REITs FTSE NAREIT Equity REITs FTSE NAREIT Mortgage REITs Returns (%) Dividend Returns (%) Dividend Returns (%) Dividend Returns (%) Dividend Returns (%) Dividend Returns (%) Dividend Period Total Price Yield 2 Total Price Yield 2 Total Price Yield 2 Total Price Yield 2 Total Price Yield 2 Total Price Yield 2 Annual (including current year to date) Quarter (including current quarter to date) 2016: Q Q Q Q : Q Q Month 2016: Dec : Jan Feb Mar Apr May Week (including current week to date) 28-Apr May May May May May Historical (compound annual rates at month-end) 1-Year Year Year Year Year Year Year Year Year Year Source: FTSE, NAREIT. Notes: 1 The FTSE NAREIT Real Estate 50 is designed to measure the performance of larger and more frequently traded REITs. 2 Dividend yield quoted in percent for the period end. Disclaimer: The FTSE NAREIT US Real Estate Index Series ("Indexes") is calculated by FTSE International Limited ("FTSE"). All rights in the Indexes vest in FTSE and the National Association of Real Estate Investment Trusts ("NAREIT"). FTSE is a trademark of the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE under licence. NAREIT is a trademark of the National Association of Real Estate Investment Trusts. Neither FTSE nor NAREIT nor their licensors shall be liable (including in negligence) for any loss arising out of use of the Indexs by any person. All data are derived from, and apply only to, publicly traded securities. REIT.com TM National Association of Real Estate Investment Trusts All Things REIT TM REITs: Building Dividends and Diversification 3

10 Exhibit 2 Investment Performance by Property Sector and Subsector May 31, 2017 Number of Total Return (%) Dividend Market Capitalization ($) 1 Sector Constituents 2016 May 2017: YTD Yield (%) Equity Implied FTSE NAREIT All Equity REITs ,068,753 1,021,780,344 FTSE NAREIT Equity REITs ,792, ,178,497 Industrial ,024,118 68,536,352 Office ,129, ,469,585 Retail ,303, ,796,650 Shopping Centers ,827,586 57,124,302 Regional Malls ,536,322 93,687,700 Free Standing ,939,799 29,984,648 Residential ,026, ,871,059 Apartments ,193, ,725,434 Manufactured Homes ,984,917 14,827,714 Single Family Homes ,848,322 10,317,912 Diversified ,302,677 56,646,700 Lodging/Resorts ,821,699 48,236,303 Health Care ,958, ,844,530 Self Storage ,875,474 57,516,056 Timber ,398,035 30,398,035 Infrastructure ,878, ,203,812 Data Centers ,056,874 67,897,039 Specialty ,292,580 37,364,223 FTSE NAREIT Mortgage REITs ,383,160 61,456,230 Home Financing ,173,103 47,239,929 Commercial Financing ,210,057 14,216,301 Source: FTSE TM, NAREIT. Notes: 1 Implied market capitalization is calculated as common shares outstanding plus operating partnership units, multiplied by share price. Data 4

11 Exhibit 3 Selected Indicators of Equity Market Performance (Period ending index levels and percent change) May 31, 2017 FTSE NAREIT Dow Jones NASDAQ US Treasury Period All Equity REITs S&P 500 Industrials Russell 2000 Composite 10-Year Note 1 Levels Returns Levels Returns Levels Returns Levels Returns Levels Returns Yield Change Annual (including current year to date) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Quarter (inlcuding current quarter to date) Month 2015: Q3 13, , , , , Q4 14, , , , , : Q1 15, , , , , Q2 16, , , , , Q3 16, , , , , Q4 15, , , , , : Q1 16, , , , , Q2 16, , , , , : May 15, , , , , Jun 16, , , , , Jul 17, , , , , Aug 16, , , , , Sep 16, , , , , Oct 15, , , , , Nov 15, , , , , Dec 15, , , , , : Jan 15, , , , , Feb 16, , , , , Mar 16, , , , , Apr 16, , , , , May 16, , , , , Historical (compound annual rates) 1-Year Year Year Year Year Year Year Year Year Year Source: NAREIT, FactSet. 1 Ten-year constant maturity Treasury note Returns in italics are price-only. 5

12 Initial Secondary Equity Secondary Debt Total Public Offerings Common Shares Preferred Shares Unsecured Capital Capital Capital Capital Capital Period Number Raised 1 Number Raised 1 Number Raised 1 Number Raised 1 Number Raised 1 Annual Totals (including current year to date) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,424 Quarterly Totals 2016: Q , , ,975 Q , , , , ,330 Q , , , ,856 Q , , , , : Q , , , ,441 Monthly Totals Exhibit 4 Historical Offerings of Securities May 31, 2017 Q , , , , : Aug 10 2, ,850 Sep 8 3, ,700 Oct 14 4, , ,200 Nov 11 5, , ,731 Dec : Jan 17 8, , ,250 Feb 5 2, , ,450 Mar 16 4, , Apr 19 8, , , ,910 May 27 9, , , ,645 Jun 17 5, , ,775 Jul 15 4, , ,800 Aug 25 9, , ,290 Sep 22 6, , ,766 Oct 10 2, , ,200 Nov 11 4, , ,600 Dec 12 3, , : Jan 17 6, , , ,021 Feb 8 2, , Mar 39 13, , ,694 Apr 13 3, , ,113 May 29 10, , ,871 Source: NAREIT, S&P Global Market Intelligence. Notes: 1 Data presented in millions of dollars. 6

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16 Comparative Total Return Investment Performance May 31, 2017 (Data in percent) FTSE NAREIT Dow Jones NASDAQ 1 Standard & Poor's Russell 2000 Bond Indexes NCREIF Period Equity Industrials 1 Stock Market Composite Value Growth Utilities Value 2000 Growth Corp/Govt Mortgage Corp NPI US Total Citigroup Citigroup ML ML Hi Yield Series Beginning> (Jan. 1972) (Dec. 1926) (Jan. 1972) (Jan. 1972) (Feb. 1985) (Jan. 1975) (Jan. 1972) (Jan. 1975) (Sep. 1989) (Jan. 1979) (Jan. 1979) (Jan. 1979) (Dec. 1975) (Jan. 1976) (Jan. 1972) (Dec. 1977) Annual Returns (including current year to date) Quarterly Returns 2015: Q : Q Q Q Q : Q Q Monthly Returns 2016: Dec : Jan Feb Mar Apr May Compound Annual Returns Complete History Year Year Year Year Year Year Year Year Year Year Annualized Volatility of Returns Complete History Year Year Year Year Year Year Year Year Year Year Price only returns Source: NAREIT, FactSet. 10

17 Comparative Total Return Investment Correlation FTSE NAREIT All Equity REITs DJ US Total Stock Market FTSE NAREIT All Equity REITs DJ US Total Stock Market NASDAQ Composite 1 NASDAQ S&P 500/ Citigroup Value S&P 500 S&P 500/ Citigroup Growth S&P Utilities Russell 2000 Value Period For Upper Right: May May 2017 Russell 2000 Russell 2000 Growth ML Corp/Govt Bond ML Mortgage Domestic High Yield Corp Bond Dow Jones Industrial Average 1 NASDAQ Composite NASDAQ S&P 500/ Citigroup Value S&P S&P 500/ Citigroup Growth S&P Utilities Russell 2000 Value Russell Russell 2000 Growth ML Corp/Govt Bond ML Mortgage Domestic High Yield Corp Bond Dow Jones Industrial Average Period For Lower Left: May May Price only returns. Source: NAREIT, FactSet. 11

18 20-Year Average Annual Total Return May May 2017 ML Corp/Govt Domestic Hi-Yield Russell 2000 Growth S&P 500 DJ US Total Stock Market S&P Utilities Percent NASDAQ Composite Russell 2000 Value FTSE NAREIT All REITs FTSE NAREIT All Equity REITs Note: NASDAQ Composite returns are price only. Source: NAREIT, FactSet. Adjusted 20-Year Average Annual Total Return May May 2017 Percent ML Corp/Govt Domestic Hi-Yield Russell 2000 Growth S&P 500 DJ US Total Stock Market S&P Utilities NASDAQ Composite Russell 2000 Value FTSE NAREIT All REITs FTSE NAREIT All Equity REITs Total Return Divided by Standard Deviation of Total Return Note: NASDAQ Composite returns are price only. 12

19 20-Year Average Annual Total Return v. 20-Year Standard Deviation of Annual Total Returns October May May October FTSE NAREIT All Equity REITs FTSE NAREIT All Equity REITs FTSE NAREIT All REITs Average Annual Return (%) Domestic Hi-Yield FTSE NAREIT All Russell REITs 2000 Value Russell 2000 Value S&P Utilities DJ US Total NASDAQ Stock Market Composite DJ US Total Stock S&P Market 500 Russell 2000 Growth S&P 500 S&P Utilities Russell 2000 Growth NASDAQ Composite 6 ML Domestic Corp/Govt Hi-Yield Standard Deviation of Annual Returns (%) 1 Price only returns. Source: NAREIT, FactSet. 13

20 50 40 Returns (%) Price Income FTSE NAREIT All Equity REITs Annual Returns Average Annual Income Returns (reinvested): 7.72% Average Annual Total Returns: 13.48% Source: FTSE TM, NAREIT. 14

21 50 40 Returns (%) Price Income S&P 500 Annual Returns Average Annual Total Returns: 11.85% Average Annual Income Returns (reinvested): 3.30% Source: NAREIT, FactSet. 15

22 50 40 Returns (%) Price Income Dow Jones US Total Stock Market Annual Returns Average Annual Income Returns (reinvested): 3.11% Average Annual Total Return: 12.00% Source: NAREIT, FactSet. 16

23 FTSE NAREIT All REITs Annual Returns for the FTSE NAREIT US Real Estate Index Series FTSE NAREIT Composite FTSE NAREIT Real Estate 50 TM FTSE NAREIT All Equity REITs FTSE NAREIT Equity REITs FTSE NAREIT Mortgage REITs Total Price Total Price Total Price Total Price Total Price Total Price Year Return (%) Index Return (%) Index Return (%) Index Return (%) Index Return (%) Index Return (%) Index Return (%) Index Return (%) Index Return (%) Index Return (%) Index Return (%) Index Return (%) Index , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

24 Annual Price and Total Returns by Property Sector (Returns in Percent) Office Industrial Retail Residential Diversified Health Care Lodging/Resorts Self Storage Timber Infrastructure Data Centers Specialty Mortgage Total Price Total Price Total Price Total Price Total Price Total Price Total Price Total Price Total Price Total Price Total Price Total Price Total Price

25 Annual Price and Total Returns by Property Subsector (Returns in Percent) Retail Residential Mortgage Shopping Centers Regional Malls Free Standing Apartments Manufactured Homes Single Family Homes Home Financing Commercial Financing Total Price Total Price Total Price Total Price Total Price Total Price Total Price Total Price

26 Equity Market Capitalization (Millions of dollars at year end) All REITs Equity Mortgage Hybrid 1 Number Market Number Market Percent of Number Market Percent of Number Market Percent of Year of REITs Capitalization of REITs Capitalization All REITs of REITs Capitalization All REITs of REITs Capitalization All REITs , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,018, , , Note: Market capitalization equals share price multiplied by the number of shares outstanding and does not include Operating Partnership Units. 1 The FTSE NAREIT Hybrid REIT Index was discontinued on December 17, Source: NAREIT 20

27 REITs in the FTSE NAREIT All REITs Index and S&P Equity Indexes May 31, 2017 Equity Market Capitalization ($M) 1 Number Ticker Investment Property S&P FTSE NAREIT Percent of Percent of % of FTSE NAREIT of REITs Company Symbol Sector Subsector REITs All REITs Sector S&P REITs All REITs (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Summary by Investment Sector, Property Sector and Property Subsector 26 Office 69, , Industrial 59, , Retail 151, , Shopping Centers 44, , Regional Malls 83, , Free Standing 23, , Residential 112, , Apartments 112, , Manufactured Homes , Single Family Homes , Diversified 21, , Lodging/Resorts 27, , Self Storage 50, , Health Care 93, , Timber 29, , Infrastructure 96, , Data Centers 58, , Specialty 26, , Mortgage REITs 1, , Home Financing 1, , Commercial Financing 1, , Industry Totals 797, ,072, Distribution of REITs by S&P Index 30 S&P 500 Large Cap 598, S&P 400 Mid Cap 153, S&P 600 Small Cap 47, Total S&P REITs 799,

28 REITs in the FTSE NAREIT All REITs Index and S&P Equity Indexes May 31, 2017 Summary of REITs in S&P Equity Indexes S&P 500 Constituents Equity Market Cap ($M) 1 American Tower Corporation 55, Simon Property Group, Inc. 48, Public Storage 37, Crown Castle International Corp 36, Equinix, Inc. 31, Prologis, Inc. 29, Welltower, Inc. 26, AvalonBay Communities, Inc. 26, Weyerhaeuser Company 24, Equity Residential 23, Ventas, Inc. 23, GGP, Inc. 19, Digital Realty Trust, Inc. 18, Boston Properties, Inc. 18, Vornado Realty Trust 17, Essex Property Trust, Inc. 16, HCP, Inc. 14, Realty Income Corporation 14, Host Hotels & Resorts, Inc. 13, MidAmerica Apartment Communities, Inc. 11, Alexandria Real Estate Equities, Inc. 10, UDR, Inc. 10, Regency Centers Corporation 10, SL Green Realty Corp. 10, Extra Space Storage Inc. 9, Iron Mountain, Inc. 9, Federal Realty Investment Trust 8, Macerich Company 8, Kimco Realty Corporation 7, Apartment Investment and Management Company Class A 6, Subtotal 598,918.4 S&P 400 Mid Cap Constituents 1 Duke Realty Corporation 10, Camden Property Trust 7, Kilroy Realty Corporation 7, American Campus Communities, Inc. 6, Liberty Property Trust 6, Omega Healthcare Investors, Inc. 6, Lamar Advertising Company Class A 5, Douglas Emmett, Inc 5, National Retail Properties, Inc. 5, Highwoods Properties, Inc. 5, Senior Housing Properties Trust 5, DCT Industrial Trust Inc. 4, Hospitality Properties Trust 4, CyrusOne, Inc. 4, Medical Properties Trust, Inc. 4, EPR Properties 4, Uniti Group Inc 4, Healthcare Realty Trust Incorporated 3, Weingarten Realty Investors 3, Taubman Centers, Inc. 3, Rayonier Inc. 3, Life Storage, Inc. 3, First Industrial Realty Trust, Inc. 3, GEO Group Inc 3, CoreCivic, Inc. 3, Cousins Properties Incorporated 3, LaSalle Hotel Properties 3, Corporate Office Properties Trust 3, Education Realty Trust, Inc. 2, Tanger Factory Outlet Centers, Inc. 2, MackCali Realty Corporation 2, Urban Edge Properties 2, Care Capital Properties, Inc. 2, Potlatch Corporation 1, Quality Care Properties, Inc. 1, Washington Prime Group Inc. 1, Subtotal 153,249.5 S&P 600 Small Cap Constituents 1 CoreSite Realty Corporation 3, PS Business Parks, Inc. 3, EastGroup Properties, Inc. 2, Lexington Realty Trust 2, DiamondRock Hospitality Company 2, Acadia Realty Trust 2, Retail Opportunity Investments Corp. 2, LTC Properties, Inc. 1, Summit Hotel Properties, Inc., 1, American Assets Trust, Inc. 1, Apollo Commercial Real Estate Finance, Inc. 1, Government Properties Income Trust 1, Sabra Health Care REIT, Inc. 1, Kite Realty Group Trust 1, Four Corners Property Trust, Inc. 1, Chesapeake Lodging Trust 1, CBL & Associates Properties, Inc. 1, Saul Centers, Inc. 1, CareTrust REIT Inc 1, Franklin Street Properties Corp. 1, Agree Realty Corporation 1, Capstead Mortgage Corporation 1, RamcoGershenson Properties Trust Parkway, Inc Universal Health Realty Income Trust Getty Realty Corp Hersha Hospitality Trust Class A Pennsylvania Real Estate Investment Trust Independence Realty Trust, Inc Urstadt Biddle Properties Inc. Class A Cedar Realty Trust, Inc Subtotal 47, Total 799,