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REIT inclusion in S&P indices marks 25-year milestone
The shift helped turn publicly traded real estate into a major economic force, with Nareit noting it reshaped how investors access REIT exposure.
Nareit marked the 25th anniversary of REITs being included in S&P indices, highlighting the role of Lee Schalop, a former managing director at Bank of America Securities and a key REIT analyst, in pushing for the change.
Schalop, speaking on the REIT Report podcast, said the effort to convince the S&P Index Committee to add REITs into the indices was pivotal in expanding REIT visibility for investors, who he argued were otherwise missing important insights on real estate’s place in the U.S. economy.
Nareit described REITs as companies that own or finance income producing real estate across multiple property sectors, and noted they must meet specific requirements to qualify, with most trading on major exchanges.
The outlet also said the inclusion of REITs helped transform publicly traded real estate from a niche investment opportunity into a larger force in the economy, with REITs historically delivering competitive total returns built on steady dividend income and long-term capital appreciation.