The EPRA/NAREIT Global Index is a composite of the existing EPRA European index and new indices in North America and Asia. Stocks will be weighted according to free float, and the inclusion criteria are designed to reflect the preferences of institutional investors. The index contains approximately 250 publicly quoted real estate companies in 21 countries throughout Europe, North America and Asia, and can therefore be seen as a truly objective and representative benchmark for the global real estate industry.
Mr. Nick van Ommen, CEO of EPRA, comments: "The EPRA/NAREIT Global Real Estate Index is the natural expansion of the highly succesful EPRA Europe Index. It is a major step forward in the development of the global real estate equity sector, providing institutional investors with the information and analytical tools they need. Not only do we provide a comprehensive range of sub-indices, but we give individual investors a customised service as well."
"Since 1972, the NAREIT family of REIT indexes has set the industry standard for benchmarking real estate investment company performance. Now, thanks to our partnership with EPRA, investors will be able to monitor the industry's growth and performance around the world.", Mr. Steven A. Wechsler, President & CEO of NAREIT adds.
The index is monitored by EPRA in Europe, NAREIT in North America and by an independent committee in Asia, all responsible to a committee appointed by EPRA and NAREIT.
The calculation of the index is carried out by Euronext Indices B.V. and distributed through established data vendors including Bloomberg, Datastream and Reuters, as well as the websites of EPRA, NAREIT and Euronext. The index will be calculated on a daily basis, with a fixing at 18.00 hrs (Central European Time). It is the intention of the partners to make the calculation on a real-time basis in the near future.
Behind the main index are a series of sub-indices, comprising individual country indices. All are expressed in Euros, US dollars, British sterling and the local currency, as well as in terms of both price and total return.
The series has a base date of 31 December 1999 at an index value of 1000 points. The attached appendix shows the family of indices and their codes. The Ground Rules are available on request from Euronext, EPRA or NAREIT, or on their respective websites. The NAREIT/EPRA Global Real Estate Index is comprised jointly by the National Association of Real Estate Investment Trustsâ (NAREIT) located in Washington, DC, USA and the European Public Real Estate Association (EPRA) based in Amsterdam, Netherlands.
The National Association of Real Estate Investment Trustsâ (NAREIT) is the national trade association for REITs and publicly traded real estate companies in the United States. Members are real estate investment trusts (REITs) and other businesses that own, operate and finance income-producing real estate, as well as those firms and individuals who advise, study and service those businesses.
The European Public Real Estate Association (EPRA) is a non-profit association primarily focused on promoting the European quoted real estate sector. Members are real estate companies, investment banks, pension funds, lawyers, accountants and business schools.
The EPRA/NAREIT Global Real-estate Index is maintained under the guidance of ground rules approved by the European Public Real Estate Association (EPRA) and the National Association of Real Estate Investment Trustsâ (NAREIT) and is calculated on a daily basis by Euronext Indices BV.
