Commercial real-estate, once considered the next shoe to drop in the financial crisis, continues to make naysayers look silly as the iShares Dow Jones US Real Estate etf (NYSE:IYR) closed at 52-week highs yesterday.
Behind sales growth from retailers, strong corporate balance sheets and decreasing unemployment, the commercial real-estate sector and etf has quietly outperformed the SPDR S&P Homebuilders (NYSE:XHB), the SPDR KBW Insurance (NYSE:KIE), the SPDR KBW Regional Banking (NYSE:KRE) and the Financial Select Sector SPDR (NYSE:XLF) over the last year.
(See performance chart below)
Simon Property Group, Inc. | NYSE:SPG | 1-year perf: +26.96%
Weighting in IYR: 7.99%
Public Storage | NYSE:PSA | 1-year perf: +26.84%
Sector: Financial | Industry: REIT – Diversified | Country: USA | Market Cap.: 19.15B
Weighting in IYR: 3.98%
HCP, Inc. | NYSE:HCP | 1-year perf: +23.02%
Sector: Financial | Industry: REIT – Healthcare Facilities | Country: USA | Market Cap.: 15.49B
Weighting in IYR: 3.58%
Boston Properties, Inc. | NYSE:BXP | 1-year perf: +26.42%
Sector: Financial | Industry: REIT – Office | Country: USA | Market Cap.: 14.35B
This chart illustrates the outperformance of Commercial RE against SPDR S&P 500 (NYSE:SPY) and other finanical groups over the last year. Sector: Financial | Industry: REIT – Diversified | Country: USA | Market Cap.: 2.49B
Digital Realty Trust, Inc. | NYSE:DLR | 1-year perf: +2.80%
(Up +15.28% over the last 3 months)
Sector: Financial | Industry: REIT – Industrial | Country: USA | Market Cap.: 5.56B
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