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REITs Now: Vastly Improved Returns Reflect Sector Changes and Opportunities, but More Work Remains
Although still well off their 2007 pre-crisis peak, great performance strides have been made by REITs globally as all asset classes and markets around the world work to re-emerge from the lingering specter of the global financial crisis. Some Asia Pacific REIT markets continued their struggle in first half 2010 to find equilibrium and fully recover as second quarter 2010 worries focused on sovereign debt concerns in Europe, the potential for a double-dip recession abroad and residential market policy initiatives in China and Hong Kong aimed at slowing the rate of price growth.
Global real estate securities have managed to persevere and even triumph since the global financial crisis first held its vise-like grip on all asset classes in the fall of 2008. From the bottom hit in March 2009 through first half 2010, the global REIT (and REOC) market has essentially doubled, says Peter Zabierek, global REITs senior portfolio manager with