Publications

- July/August 2011: Vol. 23 No. 7

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REITs Continue to Outperform: More M&A Activity and New IPOs Expected in Second Half

by Denise DeChaine

With the REIT market moving up in a slow and steady pace, it seems that 2011 is going to be very similar to 2010, when REITs advanced at a measured pace to produce a healthy 27.95 percent annual total return.

At this time last year, REITs had recorded an 11 percent total gain from January through the end of May, according to the FTSE NAREIT Equity REIT Index. This year, numbers are up slightly, to approximately 14 percent, which is a nice place to be according to industry professionals.

“We are ahead of expectations,” says Michael Torres, principal, CEO and portfolio manager at Adelante Capital Management. “I think the consensus range for total return on the street is 5 percent to 15 percent. As we’re approaching the middle of the year, the market is up 10

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