SNL: REITs Yielded 9.3% in 3Q

The real estate investment trust sector yielded a total return of 9.3% for the third quarter, according to SNL Financial, a Charlottesville, Va.-based information provider.The SNL Equity REIT Index maintained by the company slightly outperformed the 9.1% return on the Russell 2000, an index made up of small- to medium-capitalization companies, for the period. (Comparative figures for the S&P 500 index were not available by MortgageWire's deadline). Of the various real estate sectors, hotel REITs turned in the best performance, yielding a 16.9% return for the period and breaking "a streak of quarterly declines that lasted since the fourth quarter of 2001," SNL said. Non-REIT hotel companies provided a return of 18.4% for the third quarter. Retail REITs did well, too, with enclosed malls providing a 13.6% return and shopping center REITs 8.5%. Multifamily REITs had a total return of 11.4% for the period, and investors are now looking to rising interest rates as a factor that will favor this sector, SNL said. Office REITs provided the lowest total return, 4.7%, with office owners "facing another year of slow performance until employment picks up decisively."