Today, S&P announced they would remove Symbol Technologies (SBL) from the S&P 500 Index at the close of trading on January 9, 2006 and replace the company with AvalonBay Communities Inc. (AVB). AvalonBay will be the 12th REIT in the S&P 500 Index.
- Banc of America securities analyst Ross Nussbaum states index funds will need to purchase 4.5 million to 5.0 million shares of AVB, about 6.5% of the company's outstanding shares, or approximately 16 to 17 days worth of average trading volume of AVB.
- Citigroup estimates adding AVB to the index will increase the REIT sector weighting to 1.2%.
Given the strong price increase in REITs over the last few years, how much higher can REITs advance given their current valuations?
Twelfth REIT tapped to join the S&P 500 Index
January 4, 2007, 11:53 am