ICI Group downgrades a big group of equity REITs, including a number of office property players: Brookfield (BPO), Boston (BXP), and SL Green (SLG). Also reduced are multi-family REITs Equity Residential (EQR) and Home Properties (HME). DCT Industrial Trust (DCT) is cut as well.
REITs have been great in the past year - so now it's time to re-evaluate, because some of them look a little pricey. That doesn't mean get out, Jack Hough suggests; just look to warehouses instead of apartments, and keep an eye on premium to NAV (historically 7%; lately it's been 17%). Some interesting ideas: DCT, Duke Realty (DRE), and options like Healthcare Realty Trust (HR).
DCT Industrial Trust, Inc. is an industrial real estate company, engaged in the acquisition, development, leasing and management of bulk distribution and light industrial properties located in the United States.