NAREIT All-REIT Index Yield Is Uninspiring

Following the recent rebound in REIT prices, the yield on the NAREIT All-REIT index has dropped to 5.14%, well below the average of 6.42% since 1998. This level of yield is uninspiring, given the negative fundamentals of the asset class. Other areas of the equity markets are more attractively valued, which argues for an underweight allocation to U.S. REITs.

Comments

[John Gault:]

On top of it, the NAREIT bozos count dilutive stock-in-lieu dividends as yield. The real yield (in dollars, not dilution) is well below 5.14%.

Sep 17 01:58 PM