Global Property Research announces the preliminary constituents of the GPR 250 index series, which will become effective as of 1 October 2004.
The GPR 250 REIT Index is a subset of the well-known GPR 250 Index, and therefore the same methodology and rules are applied. This means that the selection criteria, calculations, periodic adjustments and all other fundamentals are exactly the same. In brief, the GPR 250 Index tracks the performance of the 250 most liquid property companies in the world. The index is free float weighted, and only companies with a free float market capitalization above US$ 50 million are eligible for inclusion. The difference lies in the fact that the GPR 250 REIT Index selects only those companies that are organized as a REIT or similar structure. Major advantage of this calculation methodology is that both index series are comparable.
Currently, the GPR 250 REIT Index consists of 167 companies of which 122 are from North America, 14 from Europe, 9 from Asia, 20 from Oceania and 2 from Africa. Currently, only 167 of the 250 companies included in the GPR 250 Index are a REIT. The total free float market capitalization amounts to US$ 262 billion, and around 72% is assigned to the United States. The composition of the GPR 250 REIT Index has changed significantly through time. The weight of the United States has increased enormously, which is largely due to a long list of IPOs in the United States. The weight of Australia more or less has remained stable. The introduction of REITs in other countries has diversified the composition of the index. This trend is likely to continue, when Asian and European countries adopt the REIT legislation and develop further.
The constituents of the GPR 250 index as of 1 October 2004 can be found on the website of Global Property Research: www.propertyshares.com.
Source: Global Property Research