LOS ANGELES REIT stocks may retain their luster in the coming year, now that the dot-com delirium seems to have abated. REITs rallied in the last half of 2000 after an up-and-down first half. And many investors may stay in REITs in 2001 because their stocks often can be a relatively safe, if unexciting, investment.
The SNL Equity REIT Index returned 26% last year, contrasted with a 5.4% decline in 1999, said Keith Pomroy, analyst with SNL Securities. Craig Silvers of Sutro & Co. forecasts that REIT stocks will return about 16% or 17% this year. Although that would be down from last years 26%, he said, it would still be an above-average performance for REITs and perhaps better than the stock market as a whole.
However, many analysts worry that the biggest threat to REITs in the comings years is vacant real estate due to dot.com bankruptcies. (1/16/01)
SOURCE: LA Times