Real Estate from an Index Perspective: Discovering Your Real Estate Benchmark

INTRODUCTION

Indices have long played an important part in measuring the real estate market and the array of offerings illustrates the varied needs of market participants.  This paper highlights the role of various real estate indices offered by S&P DJI, how they differ from each other, and how they cater to the diverse needs of real estate investors.

S&P DJI REAL ESTATE INDICES

Our diverse offerings allow investors to measure the performance of listed real estate companies in a variety of ways.

Dow Jones Select Real Estate Securities

The Dow Jones Select Real Estate Securities Indices (RESI) are cut from the S&P Global BMI and are designed to serve as a proxy for direct real estate investment.  These indices measure approximately USD 24.3 billion^[1] in passive AUM and exclude companies whose performance may be driven by factors other than the value of real estate.  

• Key Attributes: 75% of revenue must be derived from the ownership and operation of real estate; there is a minimum float-adjusted market cap of USD 200 million; mortgage companies and a majority of specialized real estate companies are excluded.
  
  
• Key Indices:

           o Dow Jones Global Select RESI

           o Dow Jones Global ex-U.S. Select RESI

           o Dow Jones U.S. Select RESI

           o Dow Jones U.S. Select REIT Index

Dow Jones Real Estate

The Dow Jones Real Estate Index seeks to track the performance of real estate investment trusts (REITs) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies, capturing approximately USD 5.0 billion^[1] in passive AUM.

• Key Attributes: Comprehensive benchmark that includes mortgage and specialized REITs.
• Key Index: Dow Jones U.S. Real Estate Index

Dow Jones Green Real Estate

The Dow Jones Green Real Estate Indices include the same constituents as the corresponding Dow Jones Select RESI, however, company weights are modified to tilt each index toward stronger performers according to GRESB’s real estate ESG assessment.  

• Key Attributes: The same constituents as the Dow Jones RESI, but weights are tilted to reward higher-performing ESG constituents.
  
  
• Key Indices:

            o Dow Jones Global Green RESI

            o Dow Jones Global Ex-U.S. Green RESI

            o Dow Jones U.S. Green REIT Index

            o Dow Jones Japan Green RESI

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