Real estate companies now have their own dedicated group on stock markets around the world, after being grouped into a category with banks and insurance firms since 1999, reports Wall Street Journal staffer Art Patnaude.
The Global Industry Classification Standard, since its inception in 1999, has grouped companies into 10 industries, such as energy or health care, allowing investors to see and compare broad trends. Real estate will form group No. 11.
The move is likely to increase the attention investors pay to real-estate investment trusts, analysts say. The new classification means “there is going to be more money looking at the sector,” said Matthew Norris, executive director for a real estate fund at London-based property firm Grosvenor Group. “This is going to bring real estate into focus.”