Good call on REITs Ken. Article in this weekend's Barrons points out that the sector is up 15% so far this year with analysts looking for another 10% gain, and interest perking up due to the Russell restructuring:
<A number of analysts were raising their price targets for REIT stocks last week. David Shulman, who heads REIT research at Lehman Brothers, looks for "another 10% upside in the stocks by yearend." Even after the sharp run-up, he adds, "REITs are still trading at roughly an 8% discount to their net asset values compared with a 15% discount when we initiated coverage in early February." Prudential's Taylor says the Morgan Stanley REIT Index could easily finish the year at 350 or higher, implying a total return this year north of 20%.>
<The property-related stocks moving down from the Russell 1000 to the Russell 2000 include Arden Realty, Catellus Development, FelCor Lodging, Franchise Finance, Highwood Properties and New Plan Excel Realty Trust. Real-estate stocks being deleted from the Russell 2000 include Associated Estates, Center Trust Retail Properties, Crown American Realty Trust, Golf Trust of America, Konover Property Trust and Prime Retail.In their note, Prudential's Taylor and Halpern observe: "There is real potential for volatility in these stocks over the next three weeks."> |
