Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: SMALL FRY who wrote (22879)	1/25/1999 10:44:00 AM
From: Jenna	Respond to of 120523

Investors Attracted To Big-Name Office And Apartment REITs Coincidence: both VNO and BXP in today's watch lists and AIV was an alternative pick, I figured it yesterday that they might take the reins. By Janet Morrissey, Staff Reporter NEW YORK -(Dow Jones)- Several big names in the real-estate investment trust world appeared to reap the benefits of a deep-pocketed investor or investors jumping into the REIT waters Friday, analysts said. Office REITs Boston Properties Inc., Equity Office Properties Trust, Mack-Cali Realty Corp. and Vornado Realty Trust, as well as apartment REIT Apartment Investment Management Co. rose on heavy volume. Boston (BXP) closed at $34.125, up $2.188, or 5.8%; Equity Office (EOP) closed up $1.125, or 4.5% at $25.938; Mack-Cali (CLI) climbed 68.8 cents, or 2.3% to $31; Vornado (VNO) rose $2.375, or 6.9%, to $36.688; and Apartment Investment (AIV) finished up $1.375, or 3.8%, to $37.625. Each saw blocks of more than 100,000 shares cross. "It appears that someone wanted to get into some large cap, high quality names and (did so) aggressively," said Lehman Brothers Inc. analyst Steve Hash. The analyst has named Boston Properties as his top pick for 1999. Morgan Stanley Dean Witter analyst Greg Whyte said the decision to dive into the high-profile office REITs was likely driven by positive news in recent days about the state of commercial real estate in central business districts of major cities. Whyte noted that Boston Properties Chairman Mort Zuckerman "painted a great picture" about the state of big markets, such as San Francisco, Boston and New York, when Zuckerman met with analysts in New York earlier this week. He said prelease commitments and the opportunity for office rent increases appear robust in the major markets. The outlook, when combined with REITs' beaten-down stock prices, have likely prompted investors to take notice, Whyte said. By targeting the large name office REITs as well as a prominent apartment REIT, he said, "investors are looking at the deep value players." Rather than "bottom-fish," he said, investors have honed in on the high-profile REITs with good management and quality assets. In recent days, a number of analysts have recommended office REITs as their top picks for 1999. "Pick stocks, not sectors, but pick the office sector anyway," said Dresdner Kleinwort Benson analyst Mary Hogan in a report this week. "We favor opportunities in the office sector because growth prospects remain strong for the high quality companies." She named Equity Office, Mack-Cali and Vornado in particular. Hogan speculated that Zuckerman's comments as well as other reports on the growth prospects of office REITs in major markets like New York likely influenced investors. PaineWebber analyst Jonathan Litt, in a report, recommended Boston Properties and Equity Office precisely for their focus on downtown office properties and their large-cap names. On the apartment side, BT Alex. Brown analyst Kevin Comer named Apartment Investment and Management Co. as one of his top picks for 1999. Salomon Smith Barney analyst David Sherman dubbed Apartment Investment his top choice among apartment REITs based on its ability to generate above-average returns on investments, its capital raising skills, and its projected funds from operations growth for 1999. -Janet Morrissey; 201-938-2118 Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved.