REIT Shares Holding Up in Troubled Commercial Real Estate Market

REIT investors are faring better than the REITs themselves according to the WSJ’s Donna Kardos Yesalavich.

In the article, REITs May Face Trouble, but REIT Shares Don’t, Yesalavich points out that REITs have rallied 90% off 18 year lows set in March, yet remain 60% below February 2007 highs. Despite continued troubles in the commercial real estate market, the improving outlook for debt refinancing means that fewer REITs are likely to be forced into bankruptcy.

Several options for gaining exposure to REITs are available for U.S. investors. The Vanguard REIT ETF (VNQ) tracks a benchmark of U.S. property trusts that covers about two-thirds of the value of the entire U.S. REIT market. Another popular REIT ETF is the DJ Wilshire REIT ETF (RWR) which invests in commercial REITs and is rebalanced monthly.

See the report Investing in REITs with ETFs for more on REIT ETFs.

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