The Dow Jones Townsend Core U.S. REIT Index has been introduced by S&P Dow Jones Indices and The Townsend Group, looking to provide investors with risk and return characteristics typical of direct core real estate investments through a basket of liquid publicly traded real estate investment trusts.
It is “an investable proxy for privately held core real estate investments," says Michael Orzano, associate director of global equity indices at S&P Dow Jones Indices.
"The index fulfills a need in the market for a representative measure of the characteristics of core property investments, constructed using liquid, publicly traded REITs."
Stocks eligible for inclusion come from the Dow Jones U.S. Select REIT Index. It is limited to companies involved in activities that are focused on longer-term rent generation.
Conversely shorter lease-term focused REITs, those investing in properties like factory outlets, hotels, manufactured homes, mixed industrial/office and suburban office are excluded. A capping scheme is employed to enhance diversification and limit single stock concentration.