Multifamily Stock Index: Easing Off a Record High
During the month of March, the MFSI fell by almost 90 points, or slightly more than 4%. With this sizable decline, the MFSI is at it fifth highest reading of all time, and still just 259 points off its all-time high, set three months ago. Despite the decline in March, the MFSI is still almost 15% higher than 12 months ago. During the past month the S&P 500 with dividends also declined, but by only 1.8%, and is now almost 7% higher than it was 12 months ago.

 Because the MFSI eased by slightly more than the S&P 500 with dividends reinvested during March, the percentage difference between the two indexes declined slightly from 105 percent to 100 percent, which is 20 percentage points below the high water mark set in December 2004. Despite the very strong 40% rise in the S&P 500 since early 2003, the MFSI has risen a staggering 51% during the same 25 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 111% while the S&P 500 with dividends reinvested has gained only 5.4%.

During the month of March, the price-to-earnings ratio (P/E) of the MFSI fell to 18.12, while the dividend yield, defined as the total cash dividend payments divided by the current stock price, increased slightly and now stands at 6.30%. The MFSI is an index of 27 publicly traded US headquartered firms, including 22 REITs, principally involved in multifamily ownership and management. [ return to top ]