NEW YORK, June 7, 2006 (PRIMEZONE) -- Dow Jones Indexes, a leading global index provider, and Wilshire Associates Incorporated, a global leader in investment technology, investment consulting and investment management, today announced the Dow Jones Wilshire Global Real Estate Investment Trust (REIT) Index will include eligible real estate companies based in South Africa for the first time.
Four stocks will be added to the Dow Jones Wilshire Global REIT Index at this month's quarterly review: Allan Gray Property Trust, Capital Property Fund, Martprop Property Fund and SYCOM Property Fund. The changes will be effective June 19, 2006.
South African property unit trusts -- the equivalent of U.S. REITs -- are now eligible for inclusion into the Dow Jones Wilshire Global Real Estate Indexes. Until now these companies were classified as "fund"-like entities, which disqualified them from the indexes' selection universe. According to the rules governing the Dow Jones Global Indexes, REITs, listed property trusts (LPTs), and similar structures taxed as REITs by their domiciles only are eligible for inclusion.
There are currently 24 countries with publicly traded securities that are eligible for inclusion in the Dow Jones Global Real Estate Indexes: Australia, Austria, Belgium, Canada, Chile, France, Germany, Great Britain, Hong Kong, Italy, Japan, Malaysia, Netherlands, New Zealand, Philippines, Poland, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand and the United States.
Launched in March of this year, the Dow Jones Wilshire Global Real Estate Securities Index includes publicly traded securities of both real estate operating companies (REOCs) and real estate investment trusts (REITs). The Dow Jones Wilshire Global REIT Index is a subset of the Dow Jones Wilshire Global Real Estate Securities Index that comprises REITs and REIT-like securities in the larger index.
As of June 6, 2006, the Dow Jones Wilshire Global Real Estate Securities Index (total return) is up 11.46% while the Dow Jones Wilshire REIT Index (total return) is up 10.79% year to date.
To be included in the indexes, an operating company or REIT must be an equity owner and operator of commercial or residential real estate and must generate at least 75% of its revenue from such assets or operations. It also must meet minimum requirements for market capitalization and liquidity. Securities of certain types of companies, such as those specializing in health-care facilities, are excluded, as are companies with more than 25% of their assets in direct mortgage investments. The reason for this exclusion is that factors other than real-estate supply and demand -- such as interest rates and medical trends -- influence the market values of these companies.
The Dow Jones Wilshire real estate index family -- which includes the Dow Jones Wilshire Global Real Estate Securities Index, Dow Jones Wilshire Global REIT Index, Dow Jones Wilshire exUS Real Estate Securities Index, Dow Jones Wilshire exUS REIT Index, Dow Jones Wilshire U.S. Real Estate Securities Index and Dow Jones Wilshire U.S. REIT Index -- serves as a proxy for direct real estate investment by institutions. Because actual real estate holdings are bought and sold infrequently, indexing the "market value" of these holdings is slow and problematic, while pension plans and other institutions need a more reliable and regularly available benchmark.
Dow Jones Wilshire indexes are available on market-data vendor platforms -- many in real-time format -- and on the Dow Jones Indexes (www.djindexes.com) and Wilshire Associates (www.wilshire.com) Web sites. The Dow Jones Wilshire 5000 Composite Index(sm) is calculated and distributed by Dow Jones Indexes pursuant to an agreement between Dow Jones & Company and Wilshire Associates Incorporated.
Journalists may e-mail questions regarding this press release to PR-Indexes@dowjones.com or contact Dow Jones Indexes/STOXX press office:
New York: +1-212-597-5720 Frankfurt: +49-69-29-725-290
To contact Wilshire Associates public relations, please e-mail kim.shepherd@wilshire.com or call: Chicago: Kim Shepherd, +1-847-332-2987
Note to Editors:
About Dow Jones Indexes
Dow Jones Indexes is part of Dow Jones & Company, which publishes the world's most vital business and financial news and information. Dow Jones Indexes is a premier global provider of investable indexes, including the Dow Jones Averages and the Dow Jones Global, Regional, Country and Sector Titans Indexes and is co-owner of the Pan-European Dow Jones STOXX Indexes. Together with Wilshire Associates, Dow Jones Indexes markets and licenses the Dow Jones Wilshire index family, which includes the Dow Jones Wilshire 5000 and its size, style, and sector indexes. Dow Jones Indexes also offers a number of specialty indexes including hedge fund, commodity and credit derivative indexes.
In addition to Dow Jones Indexes, Dow Jones & Company (NYSE:DJ) (dowjones.com) publishes The Wall Street Journal and its international and online editions, Barron's and the Far Eastern Economic Review, Dow Jones Newswires, MarketWatch and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva and with Hearst of SmartMoney. Dow Jones also provides news content to CNBC and radio stations in the U.S.
About Wilshire Associates
Wilshire Associates is a leading global investment technology, investment consulting and investment management firm with four business units: Wilshire Analytics, Wilshire Funds Management, Wilshire Consulting, and Wilshire Private Markets. The firm was founded in 1972, revolutionizing the industry by pioneering the application of investment analytics and research to investment management for the institutional marketplace. Wilshire also is credited with helping to develop the field of quantitative investment analysis that uses mathematical tools to analyze market risks. All other business units evolved from Wilshire's strong analytics foundation.
Wilshire developed the index now known as the Dow Jones Wilshire 5000 Composite Index(sm), the first asset/liability models for pension funds, the first U.S. equity style metrics work and many other "firsts" as the firm grew to more than 300 employees serving the investment needs of institutional and high net worth clients around the world.
Based in Santa Monica, CA, Wilshire provides services to clients in more than 20 countries representing in excess of 600 organizations with assets totaling more than $12.5 trillion. With eight offices on four continents, Wilshire Associates and its affiliates are dedicated to providing clients with the highest quality counsel, products and services. Please visit www.wilshire.com for more information.
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