Author Topic: What are popular REIT's to use as a benchmark?  (Read 643 times)

clarkfan1979

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What are popular REIT's to use as a benchmark?
« on: June 15, 2022, 07:22:57 PM »
If I wanted to compare REIT's to my own real estate portfolio, what are some popular well-known REIT's that I could use as a benchmark?

RWD

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Re: What are popular REIT's to use as a benchmark?
« Reply #1 on: June 15, 2022, 08:45:16 PM »
VNQ is the Vanguard index

ChpBstrd

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Re: What are popular REIT's to use as a benchmark?
« Reply #2 on: June 17, 2022, 07:25:05 AM »
I assume you want to do an apples-to-apples comparison with your physically owned residential properties to answer the question "how much extra am I being paid to put up with my tenants' crap?"

There's DJUSRN or SP1500-60101060. But I could not find much information on these indices, which appear to not be very closely followed by anybody. For example, I'd like to know if the index calculates a total return or just a price return. The internet does not appear to know.

For lack of a usable index, I looked at consolidated REIT ETFs like REZ, but even REZ has only a 51% weighting to apartments. So maybe it's more accurate to look at pure-residential REITs like EQR, AVB, ESS, or UDR. However, even at this level of granularity, there are methodological issues. All the biggest REITs are concentrated in HCOL markets like Southern California, New England, etc. If that doesn't approximate your portfolio, maybe it's not so valid a comparison. REITs like CPT and CSR have more distribution among medium cost of living places, and IRT can be a proxy for returns in the lower-cost Southeastern US. Finally, UMH offers returns on mobile home communities.