S&P U.S. REIT Composite EXCHANGE-TRADED PRODUCTS: About the Index EXCHANGE-TRADED FUNDS (ETFs) Introduced in 1997, the S&P U.S. REIT Composite index measures the securitized U.S. Real Estate First Trust S&P REIT Index Fund Investment Trust (REIT) market. REITs act as operating companies that purchase, manage, invest Standard & Poor’s does not sponsor, in, maintain, and market real estate. The S&P U.S. REIT Composite covers approximately 89% endorse, sell or promote any S&P of the U.S. REIT market capitalization, and maintains a constituency that reﬂects the market’s index-based investment product. overall composition. Designed as a market indicator, the S&P U.S. REIT Composite • Market Capitalization. A REIT must maintain a market cap in contains securities selected for market representation excess of US$ 100 million to be considered. according to geography and property type. All of the • Dividend Payment. A REIT must have made a dividend companies in the S&P U.S. REIT Composite index are publicly payment in the previous year to be considered for inclusion. traded equity REITs. • Public Float. There must be public ﬂoat of at least 50%. REITs are included in the Financials sector of the Global • Liquidity and Price. Adequate liquidity and reasonable Industry Classiﬁcation Standard (GICS®), which was per-share-price -- the ratio of annual dollar value traded to developed to meet the ﬁnancial community’s need for one market capitalization should be 0.3 or greater. Very low stock complete, consistent set of sector deﬁnitions that reﬂects prices can affect a stock’s liquidity. today’s economies. All securities added to the S&P U.S. • Trading History. After an initial public offering, a REIT must REIT Composite meet the index’s liquidity, price, and market trade for at least six months before it will be considered for capitalization requirements. These requirements help to foster inclusion. an index that is comprised of tradable securities, making it • Financial Viability. Usually measured as four consecutive useful for both benchmarking and replication purposes. quarters of positive as-reported earnings. As-reported earnings are GAAP net income excluding discontinued Contact Us: Index Methodology operations and extraordinary items. firstname.lastname@example.org The S&P Index Committee follows a set of published • Share Changes. Share adjustments that exceed 5% are guidelines for maintaining the index. Complete details of made at the time of the change. Share adjustments of less New York +1.212.438.2046 these guidelines, including the criteria for index additions and Toronto +1.416.507.3200 than 5% are made on a quarterly basis. removals, policy statements, and research papers are available London +44.20.7176.8888 CRITERIA FOR INDEX REMOVALS on the Web site at www.indices.standardandpoors.com. Paris +220.127.116.11.77.91 • REITs that substantially violate one or more of the criteria for Tokyo +813.4550.8463 The Index Committee’s primary goal is to provide investors a reliable indicator of the securitized real estate market. index inclusion. Beijing +86.10.6569.2919 Sydney +61.2.9255.9870 • REITs that are consolidated into other REITs, or which CRITERIA FOR INDEX ADDITIONS restructure so that they no longer meet the inclusion criteria. • Eligibility. Only equity REITs are eligible for addition. For more information, including current data and index performance, visit our • Traded on a major exchange. A REIT must trade on the Web site: NYSE, AMEX, or NASDAQ National Market to be considered www.indices.standardandpoors.com for inclusion. Leading Measures for U.S. Markets S&P U.S. REIT Composite S&P U.S. Indices 12/31/2007 S&P U.S. Indices Tracks the market performance, S&P U.S. REIT Composite covering 89% of the securitized U.S. Real Estate Investment Trust market. Index Performance 5 Year Historical Performance Returns 1 Month -5.38% 500 3 Month -13.37% YTD -16.80% 400 Returns (% pa) 1 Year -16.80% 3 Years 7.85% 5 Years 17.61% 300 7 Years 15.10% Risk (% pa) 3 Years Std Dev 17.03% 200 5 Years Std Dev 16.59% Sharpe Ratio 3 Years 0.0824 5 Years 0.2557 100 0 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Top 10 Companies Float Adjusted Investable Market Cap Index Sub-Industry Weight Country Company ($ Million) Weight Weight Factor GICS® Sub-Industry USA Simon Property Group, Inc 19,370.3 7.19% 25.36% 1.00 Retail REITs USA ProLogis 16,322.1 6.06% 61.03% 1.00 Industrial REITs USA Vornado Realty Trust 11,784.6 4.37% 60.34% 0.88 Diversified REITs USA Boston Properties 10,949.7 4.06% 27.65% 1.00 Office REITs USA Genl Growth Properties 10,040.2 3.73% 13.15% 1.00 Retail REITs USA Equity Residential 9,885.6 3.67% 26.45% 1.00 Residential REITs USA Kimco Realty 9,198.6 3.41% 12.04% 1.00 Retail REITs USA Public Storage 9,140.2 3.39% 14.05% 0.73 Specialized REITs USA Host Hotels & Resorts 8,901.6 3.30% 13.69% 1.00 Specialized REITs USA Plum Creek Timber Co. 7,931.6 2.94% 12.20% 1.00 Specialized REITs Tickers Sub-Industry Breakdown Portfolio Characteristics S&P U.S. REIT Composite Diversified Number of Companies 100 Bloomberg SPREIT REITs Industrial Adjusted Market Cap ($ Billion) 269.38 Reuters .SPREITS 7.25% REITs Company Size (Adjusted $ Billion): Specialized REITs 9.93% Average 2.69 24.14% Mortgage Largest 19.37 REITs Smallest 0.11 1.75% Median 1.48 Office REITs % Weight Largest Company 7.19% 14.70% Top 10 Holdings (% Market Cap Share) 42.14% Residential Retail REITs REITs 28.35% 13.88% Standard & Poor's assumes no responsibility for the accuracy or completeness of the above data and disclaims all express or implied warranties in connection therewith.
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