FTSE Group has announced the launch of the FTSE NAREIT Preferred Stock Index, which will be available in real time and as end-of-day and is designed to track the performance of US REITs preferred stocks.
The new index extends FTSE’s existing comprehensive range of real estate indices which cover global, developed and emerging markets.
The FTSE NAREIT Preferred Stock Index represents the performance of all publicly traded, non-convertible, perpetual preferred stocks that meet a minimum size requirement of $50m of face value, issued by companies that are members of the FTSE NAREIT All REITs Index.
In common with all FTSE indices, this index is managed according to a publicly available set of rules. It 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, added: “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 U.S. REIT marketplace.”