Multifamily Stocks Still Increasing at Record-Breaking Pace

During the month of August, the MFSI increased by slightly more than 146 points, or slightly more than 4.5%.  With this large rise, the MFSI is at its highest reading of all time, and is more than 30% higher than it was just 12 short months ago. During the past month, the value of the S&P 500 with dividends reinvested jumped by 2.4% and, as a result, it now finds itself almost 9% above where it was one year ago. Because the S&P 500 with dividends reinvested rose by less than the MFSI during the month of August, the performance gap—or percentage difference—between the two indexes increased  to 178% in August, which is six points higher than the previous all-time high of 172% set just last month.

Despite the very strong 72% rise in the S&P 500 since its recent low, set in October 2002, the MFSI has risen a staggering 134% during the same 46-month time period. 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 232% while the S&P 500 with dividends reinvested has gained a meager 19.6%.

During the month of August, the price-to-earnings ratio (P/E) of the MFSI rose slightly and now stands at 18.94 while the dividend yield, defined as the total cash dividend payments divided by the current stock price, and which moves in the opposite direction eased to 3.45%. The MFSI is an index of 24 publicly traded US headquartered firms, including 20 REITs, principally involved in multifamily ownership and management. [ return to top ]