An End to "The Worst MFSI Performance Period Ever"
During the month of November, the MFSI rose by 186 points. With this monthly increase, the MFSI is now up slightly more than 21% over the past 12 months, the first time the year-over-year comparison has been positive in roughly two years, putting an end to its worst performance period ever. The November increase of almost 9% returns the MFSI to a level last seen in mid-2005—about four-and-a-half years ago.

With this most recent increase the MFSI finds itself 1,490 points, or almost 39%, off its all-time high reached in January 2007. During the past month, the value of the S&P 500 with dividends reinvested increased by exactly 6%, and it now finds itself up slightly more than 25% over the past 12 months, the first time it has been in positive year-over-year territory for two months in a row in two years! 

¹ For initial article discussion the MFSI in detail see NAHB Multifamily Market Outlook, Jan. 2002
² Percentage difference is defined as (MFSI minus S&P 500 with dividends) S&P 500 with dividends

Because the MFSI increased by almost 9% while the S&P 500 with dividends rose by a just 6%, or a third less than the MFSI, the performance gap during the month of November—the percentage difference between the two indexes—increased from 113% last month to 119%.

Since its cyclical low set in October 2002, the S&P 500 with dividends has increased by 55%, while the MFSI has increased by a substantially better 75% during the same 85-month time period. And the MFSI continues to dramatically outperform the S&P 500 over longer time periods, including the past 10, 11 and 12 years. Since December 1998, the MFSI has risen by 136% while the S&P 500 with dividends reinvested has risen by a scant 8%.

During the month of October, the price-to-earnings ratio (P/E) of the MFSI rose and now stands at 24.45 while the dividend yield, defined as the total cash dividend payments divided by the current stock price, and which moves in the opposite direction, declined to 6.81%. The MFSI is an index of 18 publicly traded US headquartered firms, including 16 REITs, principally involved in multifamily ownership and management. [ return to top ]