REITs Continue to Outperform S&P 500
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Returns on publicly listed real estate investment trusts outpaced the overall S&P 500 returns by a factor of four in the first quarter. The FTSE NAREIT All REITs Index, the broadest of REIT gauges, climbed 4.05% compared to the S&P's 0.95% gains. The index's dividend yield of 3.8% also outperformed the S&P's 2.02% yield. Concern has built about froth in the booming REIT sector, with some analysts expecting a correction. According to the National Association of Real Estate Investment Trusts, which released the report on 1Q returns, REITs doled out $46B in dividends last year, up a whopping 35% from 2013. Self-storage sector REITs were the best performers of the niche, with 1Q returns of 9.16%.