Bolstered by a strengthening economy and improving housing market, real-estate stocks capped off 2012 with robust returns that outpaced the broader stock market.

The Dow Jones Equity All REIT Index, which tracks 136 real-estate investment trusts, delivered a total return of nearly 20% for 2012, more than double the 7.5% gains in 2011 and the fourth consecutive year that REITs outperformed the Standard & Poor's 500 stock index, which gained 16% in 2012. The Dow Jones Industrial Average also lagged behind REITs, posting a total return just over 10%.