MFSI Drops Back from Last Month's Record High
During the month of February, the MFSI fell by 278 points, giving back almost all of the increase it experienced the previous month. The February decline of a shade less than 7.5% is one of the largest monthly declines registered by the MFSI ever. With this substantial decline, the MFSI finds itself almost 8% off its all time high—set just last month—but is still more than 22% higher than it was just 12 months ago. During the past month, the value of the S&P 500 with dividends reinvested declined by a relativelty modest 2% and, as a result, it now stands almost 12% above where it was one year ago.

Because the MFSI declined by about three times as much as the S&P 500 with dividends during the month of February, the performance gap—or percentage difference—between the two indexes declined from 190 last month to 174 percent in February, its sixth highest reading ever.  Despite the very strong 87% rise in the S&P 500 since its most recent low set in October 2002, the MFSI has risen a staggering 150% during the same 53 month time period. In addition, the MFSI continues to dramatically outperform the S&P 500 over longer time periods including the past five, six and seven years. Since December 1998, the MFSI has risen by a whopping 257% while the S&P 500 with dividends reinvested has gained a meager 30%.

During the month of February, the price-to-earnings ratio (P/E) of the MFSI eased slightly and now stands at 20.96 while the dividend yield, defined as the total cash dividend payments divided by the current stock price, and which moves in the opposite direction rose to 3.35%. The MFSI is an index of 23 publicly traded US headquartered firms, including 19 REITs, principally involved in multifamily ownership and management. [ return to top ]