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REIT Index outperformed S&P 500 index significantly
invite response
2010 Jun 28, 5:47pm 1,158 views 1 comment
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burritos
2010 Jun 29, 2:42am
My SNH(senior housing) and MAC(upscale Malls) are holding up. My SFI(REIT financing) is trash now.
For all the talk of property price implosion. If you would have invested in a US REIT index fund this past decade, annual returns would essentially come up to about 11.18% a year https://institutional.vanguard.com/iippdf/pdfs/FS123R.pdf
For comparasion purpose, an S&P 500 index would have lost you 0.65% a year. https://institutional.vanguard.com/iippdf/pdfs/FS123R.pdf
100K would turn into 283K vs. 90K or so. This goes to show that investment property generated tremendous cash flows. Most REIT's who bought property in 2006-2007 are running into financing trouble, not cash flow troubles.