The Morgan Stanley REIT Index, which debuted in June 1995 soon after the famed REIT revolution, reached a milestone on Sept. 11 when the index reached 1,000 for the first time in its history. The index is a total-return, market-cap weighted index, meaning its value is not solely based on the stock prices of the equity REITs of which it is comprised. It is also rebalanced quarterly and includes most kinds of REITs (other than health care REITs).

The index reached 1,000 as part of a late summer rally. As of Sept. 19, the index was up 21.7 percent for the year. The pace is not as torrid as 2003 and 2004 when it rose 36.7 percent and 31.5 percent, respectively. But it's well on pace to beat last year's gain of 8.9 percent.

The index, which cleared the 900 mark for the first time in January, reached the 1,000 mark 156 trading days later, the second shortest span between milestones. Its low came when it climbed from 500 to 600 in 142 days, reaching 600 in January 2004.

YEAR-END CLOSES
Date Close Year-over-year change
2006* 1019.74 21.70%
2005 837.68 8.9
2004 769.52 31.5
2003 585.25 36.7
2002 427.99 3.6
2001 412.94 12.8
2000 365.98 26.8
1999 288.6 -4.6
1998 302.36 -16.9
1997 363.87 18.6
1996 306.86 35.9
1995** 225.81 8.8
* Through Sept. 19 ** Index began trading June 13, 1995
MILESTONE WATCH
Milestone Date Reached Trading days between thresholds
200 6/13/95 0
300 12/27/96 391
400 6/28/01 1,312
500 7/3/03 501
600 1/27/04 142
700 10/18/04 183
800 6/7/05 160
900 1/27/06 162
1000 9/11/06 156