An article by David Bogoslaw published this week in Bloomberg Businessweek gives a favorable overview of the prospects for the REIT industry along with recommendations for specific REIT investments.
“Analysts see commercial real estate values stabilizing,” Bogoslaw writes, while “vacancies are no longer rising meaningfully, rents are no longer falling, and many REITs continue to reduce their debt loads.”
The article specifically looks at Glimcher Realty Trust (GRT), Simon Property Group (NYSE:SPG), ProLogis (NYSE:PLD), Boston Properties (NYSE:BXP), Equity Residential (NYSE:EQR), SL Green (NYSE:SLG), Brandywine Realty Trust (NYSE:BDN), Kilroy Realty (NYSE:KRC), Extra Space Storage (NYSE:EXR), U-Store-It Trust (YSI), and Public Storage (NYSE:PSA).
“Equally striking,” Bogoslaw notes, “is how much more confidence investors have put in U.S. mutual funds and ETFs that focus on real estate assets than they have in equity funds in general.” The article specifically talks about First American Real Estate Securities Fund (MUTF:FREAX), Morgan Stanley Institutional U.S. Real Estate Fund (MUTF:MSUSX), and Morgan Stanley International Real Estate Fund (MUTF:MSUAX).
Disclosure: Author is long ING Real Estate Fund and Vanguard REIT Index Fund