Tags: REITs | Reign | Superior | Stocks

Real-Estate Shares Soar as Investors Seek Shelter

By Dan Weil   |   Thursday, 07 Jul 2011 08:26 AM

The housing market may still be in a slump, but real estate investment trusts (REITs) are chugging along just fine.

In the first half of the year, The Dow Jones Equity All REIT Index jumped 9.9 percent, compared to a 6 percent gain for the Standard & Poor's 500-stock Index and an 8.6 percent gain for the Dow Jones Industrial Average, The Wall Street Journal reports.

Investors see REITS as a beacon of safety amid global economic turmoil. REITs also sport juicy dividends, leading some buyers to use them as a substitute for bonds, whose yields are now paltry and whose prices may be poised for a plunge.

Last year, REITs raised $26.24 billion in equity outside of IPOs, the biggest total in 13 years, according to the National Association of REITs. And this year, $23.72 billion already has been raised.

But all is not kittens and sunshine for REITs. Commercial real estate values have risen 5 percent over the past five year, according to research firm Green Street. But REITs have dropped 20 percent during that period.

Gurufocus.com recently recommended five REITs for yield and safety: Digital Realty Trust, Health Care REIT, Omega Healthcare Investors, Senior Housing Properties Trust, and Urstadt Biddle Properties.

Each of these REITs has increased its dividend for at least five consecutive years, yields at least 4 percent, and trades at less than 15 times next year’s earnings estimates.

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The housing market may still be in a slump, but real estate investment trusts (REITs) are chugging along just fine. In the first half of the year, The Dow Jones Equity All REIT Index jumped 9.9 percent, compared to a 6 percent gain for the Standard Poor's 500-stock Index...
REITs,Reign,Superior,Stocks
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2011-26-07
 

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