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REITs’ S&P inclusion turns 25 years old

REITs entered S&P indexes after S&P excluded them, including the S&P 500, until the policy change in October 2001.

Reported · Written up by our desk · REITs

Nareit marks 25 years since REITs were added to S&P indexes, a shift that helped change how investors viewed the sector and supported growth over the following years.

Standard & Poor’s had kept REITs out of its indexes, including the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600, before the policy change in October 2001, with Sam Zell’s Equity Office Properties Trust joining the S&P 500 that same month and Equity Residential following in December 2001.

According to Nareit, inclusion in the S&P 500 became a pivotal moment for the REIT industry and helped drive capital flows to publicly traded real estate companies. Over the past 25 years, REITs’ market capitalization rose from $147.0 billion at the end of 2000 to $1.4 trillion today, and there are 28 public REITs now listed on the S&P 500.

Latest closeS&P 500 7,765.36 ▼0.5%

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