Wednesday, July 11, 2007

REITs in the tank this quarter

Well, the long streak of continuous REIT profits had to end sooner or later. I noticed this over the weekend while looking at my own investments, and The Wall Street Journal confirmed it today: REIT returns were down 9% in the second quarter. And it could have been double that but for a rally. The usual reasons are cited: increased borrowing costs, concern about the subprime residential lending disaster causing a spillover effect (though it has not happened yet), yadda yadda yadda. Maybe the uptick will be helpful for the 3Q, but only time will tell.