Multifamily Stocks Drops, S&P Improves Slightly
During the month of December, the MFSI dropped to 3521, a decrease of almost 111 points, or a shade more than 3%. With this decline, the MFSI is still near its all-time high or 3648, and is more than 35% higher than it was just 12 months ago. During the past month, the value of the S&P 500 with dividends reinvested jumped by 1.4% and, as a result, it now finds itself almost 16% above where it was one year ago.

Because the S&P 500 with dividends reinvested rose substantially during the month of December while the MFSI declined during the month, the performance gap (or percentage difference) between the two indexes decreased from 181% in October to 169% percent in December — its lowest level in six months. Despite the very strong 88% rise in the S&P 500 since its recent low set in October 2002, the MFSI has risen a staggering 147% during the same 51-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 252% while the S&P 500 with dividends reinvested has gained a meager 31%. 

For initial article discussing the MFSI in detail see NAHB Multifamily Market Outlook, January 2002.
Percent difference is defined as (MFSI minus S&P 500 with dividends)/S&P 500 with dividends.

During the month of November, the price-to-earnings ratio (P/E) of the MFSI eased slightly and now stands at 19.47 while the dividend yield, defined as the total cash dividend payments divided by the current stock price, and which moves in the opposite direction climed to 3.27%. The MFSI is an index of 23 publicly-traded US headquartered firms, including 20 REITs, principally involved in multifamily ownership and management. [ return to top ]