Publications

- September 2008: Vol. 20 No. 9

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Investors Seek Stability: Economic Uncertainty Weighs Heavy on REIT Outlook

by Brad Berton

REIT analysts and real estate securities fund managers are logically leery of the slowing economy’s impact on FFO growth and in turn share prices and dividend distributions. Accordingly, it appears they’re paying more attention than ever to that old “location” adage.

More specifically they’re concerned about: apartment REITs exposed to the most overbuilt housing markets, office REITs operating in secondary markets and suburbs, and strip center trusts developing on greenfield fringes.

In the multifamily category, the experts aim to weigh the impacts of general near-term residential woes against favorable longer-term demographic patterns.

Craig Silvers at Bricks & Mortar Capital worries about apartment REITs facing particular exposure to heavy competition in overbuilt single-family and condo markets. While trusts competing in Florida, Arizona and Nevada may have tough times ahead, those with substantial operations in the N

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