FTSE Russell Factsheet

FTSE Nareit US Real Estate Index Series

Data as at: 30 September 2019
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The FTSE Nareit US Real Estate Index Series is designed to present investors with a FEATURES
comprehensive family of REIT performance indexes that spans the commercial real estate space
across the US economy. The index series provides investors with exposure to all investment and Coverage
property sectors. In addition, the more narrowly focused property sector and sub-sector indexes Publicly listed US REITs.
provide the facility to concentrate commercial real estate exposure in more selected markets.
Objective
About REITs
The indexes are designed for the creation of
A REIT is a company that owns, and in most cases, operates income-producing real estate such structured products, index tracking funds, or
as apartments, shopping centers, offices, hotels and warehouses. Some REITs also engage in
as a performance benchmark.
financing real estate. The shares of many REITs are freely traded, usually on a major stock
exchange. To qualify as a REIT, a company must distribute at least 90% of its taxable income to Investability
its shareholders annually. A company that qualifies as a REIT is permitted to deduct dividends Stocks are free-float weighted to ensure that
paid to its shareholders from its corporate taxable income. As a result, most REITs remit at least only the investable opportunity set is
100% of their taxable income to their shareholders and therefore owe no corporate tax. Taxes
included within the indexes (with the
are paid by shareholders on the dividends received and any capital gains. Most states honor this
exception of the FTSE Nareit All REITs
federal treatment and also do not require REITs to pay state income tax. Like other businesses,
Index).
but unlike partnerships, a REIT cannot pass any tax losses through to its investors.
Liquidity

5-Year Performance - Total Return Stocks are screened to ensure that the
(USD) indexes are tradable.
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Transparency
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150 The indexes use a transparent,
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methodologies-based construction process.
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120 Index methodologies are freely available on
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the FTSE Russell website.
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90 Availability
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Oct-2014 Oct-2015 Oct-2016 Oct-2017 Oct-2018 Oct-2019 The index is calculated based on price and
total return methodologies, both real time
FTSE Nareit Composite FTSE Nareit All Equity REITs and end-of-day.
FTSE Nareit Mortgage REITs FTSE Nareit Real Estate 50

Performance and Volatility - Total Return

Index (USD) Return % Return pa %* Volatility %**

3M 6M YTD 12M 3YR 5YR 3YR 5YR 1YR 3YR 5YR

FTSE Nareit Composite 7.4 9.2 27.4 19.7 29.8 67.7 9.1 10.9 14.4 12.1 13.0

FTSE Nareit All Equity REITs 7.7 9.7 28.5 20.7 29.6 69.0 9.0 11.1 14.9 12.6 13.4

FTSE Nareit Mortgage REITs 2.1 1.9 12.1 5.7 33.9 53.4 10.2 8.9 11.7 10.4 12.2

FTSE Nareit Real Estate 50 7.8 10.3 29.2 24.5 31.5 70.9 9.6 11.3 14.7 12.1 13.1

* Compound annual returns measured over 3 and 5 years respectively

** Volatility – 1YR based on 12 months daily data. 3YR based on weekly data (Wednesday to Wednesday). 5YR based on monthly data

Source: FTSE Russell as at 30 September 2019. Past performance is no guarantee of future results. 1 of 4
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
FTSE Nareit US Real Estate Index Series Data as at: 30 September 2019

Year-on-Year Performance - Total Return INFORMATION

Index % (USD) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Index Universe
FTSE Nareit Composite 27.8 27.6 7.3 19.7 2.3 27.2 2.1 9.4 9.3 -3.9

FTSE Nareit All Equity REITs 28.0 27.9 8.3 19.7 2.9 28.0 2.8 8.6 8.7 -4.0
Nareit Domestic Real Estate Index Series

FTSE Nareit Mortgage REITs 24.6 22.6 -2.4 19.9 -2.0 17.9 -8.9 22.8 19.8 -2.5 Index Launch
FTSE Nareit Real Estate 50 27.6 26.7 9.4 18.0 -0.5 28.7 4.4 5.5 9.2 -2.1 17 March 2006

Return/Risk Ratio and Drawdown - Total Return Base Date

Index (USD) Return/Risk Ratio Drawdown (%) 31 December 1971;

FTSE Nareit Real Estate 50: 31 December
1YR 3YR 5YR 10YR 1YR 3YR 5YR 10YR
1999
FTSE Nareit Composite 1.3 0.9 0.8 0.9 -12.7 -12.7 -15.9 -22.1

FTSE Nareit All Equity REITs 1.3 0.9 0.8 0.9 -12.9 -12.9 -16.3 -22.9 Base Value
FTSE Nareit Mortgage REITs 0.5 1.1 0.7 0.7 -9.8 -11.7 -23.2 -25.2 100
FTSE Nareit Real Estate 50 1.6 0.9 0.9 0.9 -12.2 -12.5 -15.7 -21.6 FTSE Nareit Real Estate 50: 1000

Return/Risk Ratio – based on compound annual returns and volatility in Performance and Volatility table
Investability Screen
Drawdown - based on daily data
Actual free float applied and liquidity
Top 10 Constituents - FTSE Nareit Composite Index screened. (Free float adjusted since March
Constituent Property Sector Net MCap (USDm) Wgt % 2006.)
American Tower Corp Infrastructure REITs 97,015 7.56 Index Calculation
Crown Castle Intl Corp Infrastructure REITs 57,556 4.48
Real-time (calculated every 15 seconds) and
Prologis Industrial 53,413 4.16
end-of-day indexes available
Equinix Inc Data Centers 48,264 3.76
End-of-Day Distribution
Simon Property Group Retail 47,751 3.72
Via FTP and email
Welltower Inc. Health Care 36,653 2.86

Public Storage Self Storage 36,235 2.82 Currency

Equity Residential Residential 31,479 2.45 USD, EUR, GBP, JPY and Local
Avalonbay Communities Residential 29,909 2.33
Review Dates
Ventas Inc Health Care 27,128 2.11
Quarterly in March, June, September and
Totals 465,404 36.26
December
Top 10 Constituents - FTSE Nareit All Equity REITs History
Constituent Property Sector Net MCap (USDm) Wgt % Nareit: From December 1971 to March 2006
American Tower Corp Infrastructure REITs 97,015 8.02 FTSE: From March 2006 onward
Crown Castle Intl Corp Infrastructure REITs 57,556 4.76

Prologis Industrial 53,413 4.42

Equinix Inc Data Centers 48,264 3.99

Simon Property Group Retail 47,751 3.95

Welltower Inc. Health Care 36,653 3.03

Public Storage Self Storage 36,235 3.00

Equity Residential Residential 31,479 2.60

Avalonbay Communities Residential 29,909 2.47

Ventas Inc Health Care 27,128 2.24

Totals 465,404 38.49

Source: FTSE Russell as at 30 September 2019. Past performance is no guarantee of future results. 2 of 4
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
FTSE Nareit US Real Estate Index Series Data as at: 30 September 2019

Sector Breakdown
FTSE Nareit All Equity REITs FTSE Nareit Composite FTSE Nareit Real Estate 50

Property Sector No. of Net MCap Wgt % No. of Net MCap Wgt % No. of Net MCap Wgt %
Cons (USDm) Cons (USDm) Cons (USDm)

Commercial
- - - 13 23,092 1.80 1 6,575 0.69
Financing

Data Centers 5 91,234 7.54 5 91,234 7.11 2 75,169 7.84

Diversified 17 60,721 5.02 17 60,721 4.73 3 36,354 3.79

Health Care 17 129,421 10.70 17 129,421 10.08 4 90,156 9.40

Home Financing - - - 23 51,056 3.98 2 21,559 2.25

Industrial 12 108,265 8.95 12 108,265 8.44 3 73,554 7.67

Infrastructure REITs 5 183,576 15.18 5 183,576 14.30 3 181,549 18.94

Lodging/Resorts 16 47,260 3.91 16 47,260 3.68 1 12,475 1.30

Office 18 94,008 7.77 18 94,008 7.33 4 51,522 5.37

Residential 21 186,640 15.43 21 186,640 14.54 11 174,737 18.23

Retail 32 167,575 13.86 32 167,575 13.06 9 129,568 13.51

Self Storage 5 64,154 5.31 5 64,154 5.00 2 50,634 5.28

Specialty 11 48,942 4.05 11 48,942 3.81 4 34,287 3.58

Timber REITs 4 27,433 2.27 4 27,433 2.14 1 20,581 2.15

163 1,209,231 100.00 199 1,283,378 100.00 50 958,722 100.00

Index Characteristics
Attributes FTSE Nareit FTSE Nareit All FTSE Nareit FTSE Nareit Real
Composite Equity REITs Mortgage REITs Estate 50
Number of constituents 199 163 36 50

Net MCap (USDm) 1,283,378 1,209,231 74,147 958,722

Dividend Yield % 3.93 3.54 10.22 3.47

Constituent Sizes (Net MCap USDm)

Average 6,449 7,419 2,060 19,174

Largest 97,015 97,015 12,771 97,015

Smallest 96 141 96 4,447

Median 2,592 3,058 977 12,623

Weight of Largest Constituent (%) 7.56 8.02 17.22 10.12

Top 10 Holdings (% Index MCap) 36.26 38.49 73.76 48.54

About NAREIT
Nareit is the trade association for REITs and publicly traded real estate companies with an
interest in the US property and investment markets. See www.reit.com for more information.
FTSE and Nareit partnered in March 2006 to create the FTSE Nareit US Real Estate Index Series.

30 Sept ember 2019

Source: FTSE Russell as at 30 September 2019. Past performance is no guarantee of future results. 3 of 4
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.
FTSE Nareit US Real Estate Index Series Data as at: 30 September 2019

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Source: FTSE Russell as at 30 September 2019. Past performance is no guarantee of future results. 4 of 4
Returns shown before the index launch date reflect hypothetical historical performance. Please see disclaimer for important legal information.