So far, 2003 has been a good year to invest in retail companies, especially those that own and operate outlet centers. As of May 16, the outlet center segment had posted the best year-to-date total return (26.9 percent) among all REIT sectors. Strip centers and regional malls posted the next highest returns, with year-to-date returns on 16.0 percent and 15.1 percent, respectively. On the opposite end of the spectrum, hotel REITs posted the only negative year-to-date return of any sector, as the downturn in the travel industry has lingered.
| Sector
Breakdown |
|
YTD
Total
Return |
2002
Total
Return |
2001
Total
Return |
Current
Total
Yield |
| Outlet Centers |
26.87% |
46.89% |
36.15% |
5.39% |
| Strip Centers |
16.04% |
17.05% |
35.14% |
6.30% |
| Regional Malls |
15.08% |
25.27% |
34.57% |
5.96% |
| Manufactured Homes |
12.36% |
-3.76% |
12.09% |
7.03% |
| Triple Net Lease |
12.21% |
23.37% |
43.08% |
7.11% |
| Diversified |
11.75% |
2.89% |
14.21% |
6.66% |
| Office |
10.94% |
-2.38% |
3.44% |
7.32% |
| Health Care |
10.47% |
9.51% |
NA |
8.60% |
| Apartments |
9.49% |
-4.50% |
9.50% |
7.03% |
| Self-Storage |
8.85% |
2.25% |
45.57% |
5.65% |
| Mixed |
8.64% |
9.14% |
8.26% |
6.91% |
| Industrial |
7.95% |
18.22% |
5.18% |
5.88% |
| Hotel |
-6.07% |
5.33% |
-1.12% |
5.11% |
Note: For
the sector returns, weighted average total returns are based on dividends
reinvested in each component stock. Weighting is based on common equity
market capitalization.
Source: Morgan Stanley |
