A reminder from the REIT outlook piece that I just released

Since 42 pages may be a lot to digest, let me post an excerpt from the  CRE 2010 Overview 2009-12-15 02:39:04 2.72 Mb to illustrate a point.

REITs have ascended too far from their fundamentals -DJ US Real Estate
Index has outpaced S&P 500 index by more than 50% during a time
when their macro and fundamental outlook pale compared to that of the
broad market. There is no "deal" to be had here! What you are
witnessing is momentum trading, not fundamental value.

 S&P 500 increased 62.0% between March 9, 2009 and December 9,
2009, while the DJ US Real estate index increased by 96.2% over the
same period. With many tribulations still plaguing the US REIT sector,
the valuations appear quite stretched.

The ascending REIT index is again creating the potential for another
upheaval similar to that witnessed after the Lehman debacle. The DJ US
Real estate index which was at 228.91 on September 15, 2008 has reached
at 171.6 as of December 9, 2009.