MSCI US REIT INDEX
The MSCI US REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (REITs). REITs are companies that in most cases own and operate income producing real estate assets. To qualify as a REIT under the Internal Revenue Code, a REIT is required to distribute at least 90% of its taxable income to shareholders annually and receive at least 75% of that income from rents, mortgages and sales of property.
The index includes equity REIT sub-industries which are part of the real estate sector according to the Global Industry Classification Standard (GICS ®) structure. To be eligible for inclusion in the index, companies must have an equity REIT structure, real estate exposure and REIT tax status as per the Internal Revenue Code requirements mentioned above. As a result, select specialized REITs that do not meet these criteria are excluded from the index.
Launched in June 2005, the index is currently built from the MSCI USA Investable Market Index (IMI), which aims to represent the performance of large, mid and small caps securities. The MSCI USA Investable Market Index is governed by the MSCI Global Investable Market Indexes methodology.