The FTSE Group has announced the launch of a real estate index to measure the performance of real estate investment trusts in the USA.
FTSE NAREIT Preferred Stock Index will offer real time and daily coverage of all publicly traded, non-convertible, perpetual preferred stocks valued above $50m, issued by member companies.
The index is calculated on a market capitalisation weighted basis with capping to avoid single issuer concentration.
Jonathan Horton, president of FTSE North America, said: “We are delighted to announce the launch of the FTSE NAREIT Preferred Stock Index in conjunction with NAREIT. Access to REIT preferred securities continues to offer portfolio diversification benefits and FTSE’s new benchmark will provide end investors with a continuous, transparent and accurate representation of the US preferred REITs market.”
Steven Wechsler, NAREIT president and CEO, said: “REIT preferred shares are helping many investors meet their investment objectives today. We are pleased to be able to provide investors and developers of financial products with this new benchmark for the US REIT marketplace.”