MFSI Bounces Back
During the month of November the MFSI increased by 95 points, or almost 4%. With this rise, the MFSI is at its second-highest reading of all time, with the record set just four months ago, and is a full 16% higher than it was 12 months ago. During the past month, the S&P 500 (with dividends reinvested) also gained almost 4% and, as a result, finds itself almost 9% above where it was a year ago.

Because the MFSI increased by exactly the same amount as the S&P 500 with dividends during November, the performance gap—or percentage difference—between the two indexes remained unchanged from 132% in October. That level was just 10 percentage points lower than the high-water mark of 142% set in July of this year, and the second-highest level ever recorded. Despite the very strong 62% rise in the S&P 500 since its low point in late 2002, the MFSI has risen a staggering 83% during the same 38 months. In addition, the MFSI continues to dramatically outperform the S&P 500 over longer time periods including the past four, five, and six years. Since December 1998, the MFSI has risen by a whopping 162% while the S&P 500 with dividends reinvested has gained a meager 13%.

During the month of November, the price-to-earnings ratio (P/E) of the MFSI rose slightly to 18.06 while the dividend yield, defined as the total cash dividend payments divided by the current stock price, which moves in the opposite direction, decreased and now stands at 5.28%. The MFSI is an index of 26 publicly traded US headquartered firms, including 22 REITs, principally involved in multifamily ownership and management. [ return to top ]