Looking back at why REITs outperform

Since Sept 2002, which is as far back as the FTSE REIT Index goes, REITs have outperformed the Straits Times Index by two times. Including distributions reinvested, the FTSE REIT Index has gained 520% these 20 years while the STI, with dividends reinvested, is up just 242%. In the past 10 years, the FTSE REIT Index has done three times better than the STI. This is not just based on dividends and yield alone but also on price appreciation.