Why Real Estate?
Current Income
REIT Dividend Growth — an Inflation Hedge
REIT dividends can provide investors with an attractive income-producing portfolio, and potentially serve as a hedge against inflation. The chart below compares REIT dividend growth with the Consumer Price Index, the most commonly used barometer to measure the cost of goods and services. REIT dividend growth has generally outpaced inflation, resulting in increased purchasing power for the investor.
NCREIF Annual Returns vs.
Consumer Price Index (Rolling)1
1977 - 2009
1 Source: NCREIF (National Council of Real Estate Investment Fiduciaries) and U.S. Bureau of Labor Statistics. Past performance is not a guarantee of future results. The NCREIF Property Index (NPI) is an index of quarterly returns reported by institutional investors on investment grade commercial properties owned by those investors. The NPI is used as an industry benchmark to compare an investor’s own returns against the industry average. The NPI is based on institutional investments and is presented without leverage or fees. The Consumer Price Index is an indicator of inflation that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food and transportation.