Ground rules - FTSE EPRA/NAREIT Global Real Estate Index Series 

There are four main rules:

  1. Minimum free-float market capitalisation: a. Section 5.3.
  2. Minimum liquidity requirement: a. Section 5.6.
  3. Minimum percentage of EBITDA from relevant real estate. Relevant real estate is described as:
    "The ownership, trading and development of income-producing real estate." a. Section 4.4.
  4. Full set of audited English Annual Accounts: a. Section 4.7.

Accounts should include: full notes, balance sheet, income statement and accompanying Management statement. Click here for the main set of ground rules. Click here for the Dividend Plus ground rules.

The Indices are governed by a Global Index Committee and three Regional Index Committees. The Regional Committees consist of a minimum of seven Industry participants including Investors and Analysts and meet on a quarterly basis to discuss the Index Methodology and verify the Index Changes based on clear ground rules.

The Global Index Committee consists of, among other, the three chairmen of the Regional Committees and meet once a year. The installation of the committees ensures the continued appliance and compliance to the ground rules as well as timely discussions and modifications taking into account any long-term changes in industry practice.

Fast-track entry allows certain stock to be included into the index at short notice: Section 6.2.

fast_entry.gif

  • IPOs and Fast Track Inclusion in the FTSE EPRA/NAREIT Index Series New Issues that attain the critical size in terms of market capitalisation are eligible for a Fast Track Inclusion outside the index review dates. Eligible IPOs must publish a complete prospectus and should meet the EBITDA test on real estate earnings.
  • There will be no fast entry rule for the FTSE EPRA/NAREIT AIM index. 

Here is full set of ground rules and more detailed information.

General pages available on the following data vendors using:

 

   Bloomberg:"EPRA GO" --- Reuters:"EPRA" --- Datastream:"EPRA" --- Telekurs:"EPRA"

   Factset:"EPRA" --- FTSE:www.ftse.com/realestate --- NAREIT:www.nareit.org

Exchange Traded Funds (ETFs) represent a fractional ownership in an underlying basket of stocks that track a specific benchmark such as the FTSE 100, or in the case of real estate stocks - the FTSE EPRA/NAREIT Global Real estate Index. Effectively, ETFs are built like mutual funds but trade like individual stocks. Investors do not buy or sell shares from the fund but instead trade shares in the ETF on an official stock exchange. ETFs are priced continually and can be bought or sold throughout the trading day. Prices for ETFs fluctuate according to changes in the underlying portfolio and also according to the market supply of ETFs themselves. ETFs provide investors with the ability to buy, or sell, exposure to a particular market or sector, such as real estate - in a single transaction.

There are a number of potential applications and strategies using ETFs. Some of these are listed below:  

  • Asset allocation tools for increasing or decreasing exposure to a specific style, sector or capitalisation

  • Sector rotation strategies

  • Arbitrage strategies

  • Hedging and defensive strategies

  • Stock-lending revenue strategies (from short sellers)

  • Market neutral strategies

  • Exposure in markets where no listed derivative exists

  • Maintaining exposure during a manage transition

  • Hedging tools for shorting

  • Transition management

A number of ETFs are available of the FTSE EPRA/NAREIT Global Real Estate Index series. For more information please contact: info@epra.com.

Useful links:

www.easyetf.com
www.ishares.com

ETF_flow.jpg

End-of-day products:

The following product specifications are available:

  • Constituent Services File
  • Valuation Service
  • Tracker Service

Full product details are available from FTSE here.

Contact: info@ftse.com

 

MWSnap004.png

FTSE EPRA/NAREIT Global
monthly Factsheet
 

NAREIT.jpg

FTSE-logo.jpg   

About the indices

EPRA in collaboration with FTSE and NAREIT is the provider of the leading benchmark index of the listed sector globally. Investors rely on the expertise and professionalism of EPRA to track the European market in particular, which allows them to compare their portfolio returns. With around 400 stocks, the Global index represents over EUR 1 trillion of prime property worldwide. Click here for more background.