Pine River Capital Management launched a new REIT Index. According to a press release from the firm, the Pine River REIT Index will provide a means to monitor sector performance in REITs.
Specifically, it will include publicly traded REITs that primarily originate, service, or invest in RMBS, among other residential mortgage interests.
The company said in the release that the index uses a modified market capitalization weighted methodology, which will allow investors to follow breaking event-driven news as well as observe long-term trends in REITs. The index will be calculated and maintained by Standard & Poor’s on a price and a total return basis.
The REIT sector is a rapidly expanding market that has grown at a compound annual growth rate of 33% since 2008 with a current market cap of approximately $36 billion, the release stated.
Pine River listed the following requirements for inclusion in the index: 1) a residential mortgage REIT that mostly originates, services, or invests in residential mortgage interests, 2) a market capitalization of at least $250 million, 3) an average daily trading value of greater than $2.5 million for the previous three months, and 4) listed on a major U.S. stock exchange.