Multifamily Stock Index Begins to Bounce Back
During March the MFSI went up by 50 points, or almost 4%. With this sizable increase, the MFSI is only 10% off its all-time high, and is about 9% lower than a year ago. During the past month, the S&P 500 with dividends rose by 1%, and is still almost 25% lower than 12 months ago.

Because the MFSI increased by almost 4% while the S&P 500 with dividends went up by only 1%, the percentage difference between the two indexes rose from 93% to 98%, a level surpassed on only one previous occasion. Despite recent weakness in the MFSI during the past year, it has dramatically outperformed the S&P 500 over the past one, two, three, and four-year time periods. Since December 1998, the MFSI has risen by nearly 45% while the S&P 500 with dividends has fallen by 26.9%.  During November, the price-to-earnings ratio (P/E) of the MFSI edged up from 16.31 to 16.75, while the dividend yield, defined as the total cash dividend payments divided by the current stock price, rose from 7.67% to 7.77%  The MFSI is an index of 29 publicly traded US headquartered firms principally involved in multifamily ownership and management.

[ return to top ]