Section 3 • Economics & Demographics


A positive sign was the addition of many high-income jobs, par- ticularly in health care, financial, and professional services. Higher wages give consumers more disposable income that


can be spent on goods and services, including storage. Consum- er spending, which accounts for more than 70 percent of U.S. economic activity, was credited with accelerating U.S. economic growth in the second quarter of last year. The Commerce Depart- ment reported that gross domestic product (GDP) expanded at a 2.3 percent annual rate in the second quarter; however, the economy grew only 1.5 percent in the first half of 2015 compared to 1.9 percent during the same period in 2014.


Bolstering the job market, consumer confidence was on the


rise in late summer. The Conference Board Consumer Confidence Index rose in August to 101.5, the highest reading since January. By comparison, the index registered a mere 62.0 in June 2012.


Consumers’ upbeat outlook was attributed to a more favor- able appraisal of the labor market, along with lower gasoline prices and an improving housing market. It can be assumed that the more confidence consumers display, the more likely they are to spend on goods and services in the near future. Continuing


Sector Constituents FTSE NAREIT All Equity REITs


FTSE NAREIT Equity REITs


167 157


Industrial/Office 39 Industrial Office Mixed


8


23 8


Retail 32 Shopping Centers Regional Malls


Free Standing Manufactured Homes


Residential 16 Apartments


13 3


Diversified 31 Lodging/Resorts 18 Health Care Self Storage


Timber 5 Infrastructure 5


38 Self-Storage Almanac 2016


18 8 6


2014 28.03


30.14 24.26


21.00 25.86 23.11


27.62 29.96 32.64 9.66


40.04 39.62 46.20


16 5


27.18 32.50 33.32 31.44 8.57


20.15


Total Return (%) October 6.47


5.87 8.03


9.28 7.43 8.61


9.10 8.72 9.94 6.57


2.03 2.07 1.49


8.06 5.91 -1.61 6.66 6.32


12.84


confidence could portend a more enduring economic recovery going forward.


Housing Recovery Housing in 2015 continued to claw its way back from the dev- astating recession, despite stumbling in late summer. Existing home sales dipped in August following three straight months of gains, according to the National Association of Realtors. Total ex- isting home sales, comprising single-family homes, townhomes, condominiums, and co-ops, fell 4.8 percent to a seasonally ad- justed annual rate of 5.31 million in August from 5.58 million in July. Despite the month’s decline, sales increased year-over-year for 11 consecutive months and were still 6.2 percent above Au- gust 2014 (5.00 million).


The median price for all resale housing types in August was


$228,700, which was 4.7 percent higher than in August 2014. August’s price increase marked the 42nd consecutive month of year-over-year gains.


The percent share of first–time buyers rebounded to 32 per-


cent in August, up from 28 percent in July. A year earlier, first– time buyers represented 29 percent of all buyers.


Table 3.2 – NAREIT Investment Performance by Property Sector and Subsector (October 30, 2015) Number of


2015: YTD 1.67


1.86 0.54


1.75 0.53 -1.46


5.53 4.32 7.32 1.59


10.22 9.75


16.91 1.58


-18.09 -11.07 28.48 -12.23 6.16


Dividend Yield (%) 3.74


3.82 3.47


3.73 3.06 4.87


3.53 3.46 3.22 5.05


3.07 3.06 3.19


4.30 4.25 5.68 2.93 4.30 2.73


1 Implied market capitalization is calculated as common shares outstanding plus operating partnership units, multiplied by share price. Data presented in thousands of dollars.


Equity


879,776,167 776,723,469


144,856,029 33,689,912 90,816,174 20,349,942


207,309,208 68,715,091 113,447,102 25,147,015


114,291,196 105,374,079 8,917,117


114,328,679 50,542,277 87,486,216 57,909,864 26,861,310 76,191,388


Market Capitalization1 Implied


919,074,175 815,614,843


156,407,130 34,392,038 100,803,955 21,211,137


223,239,615 70,144,190 127,900,723 25,194,702


117,733,245 108,183,959 9,549,286


120,023,175 51,074,081 88,290,645 58,846,952 26,861,310 76,598,023


Source: FTSE™, NAREIT®


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