Multifamily Stocks Still Beating the Market
During the month of February the MFSI rose by almost 58 points, or slightly more than 2.5%. With this slight rise, the MFSI is at it fourth-highest reading of all time, and just 170 points off its all-time high set two months ago. Despite a decline in January, the MFSI still is almost 24% higher than it was 12 months ago. During the past month, the S&P 500 with dividends also rose — but by only 2.1% — and is now almost 7% higher than it was 12 months ago. Because the MFSI rose by slightly more than the S&P 500 with dividends reinvested during February, the percentage difference between the two indexes widened slightly from 104% to 105% —one percentage point higher than it was last month, but fully 15 percentage points below the high-water mark set in December 2004.

Despite the very strong 48% rise in the S&P 500 since early 2003, the MFSI has risen a staggering 57% rise during the same 24 months. In addition, the MFSI continues to dramatically outperform the S&P 500 over longer time periods including the past three, four, five and six years. Since December 1998, the MFSI has risen by almost 120% while the S&P 500 with dividends reinvested has gained only 7.3%.

During the month of February, the price-to-earnings ratio (P/E) of the MFSI rose to 18.45, while the dividend yield — defined as the total cash dividend payments divided by the current stock price — eased slightly from 6.20% to 6.04%. The MFSI is an index of 28 publicly traded US headquartered firms, including 23 REITs, principally involved in multifamily ownership and management. [ return to top ]