REITs Up Due To Apartments And Self-Storage
SOURCE: Wall Street Journal Online
Real-estate investment trusts rallied in the first quarter. These were driven by strong gains in two of the industries that are benefiting from the housing bust. Eight of the top 10 performers last quarter by way of total returns -- a combination of stock-price appreciation and dividends -- were apartment or self-storage REITs.
Because people are moving from homes they can't afford into apartments and their belongings into self-storage units, both these industries are doing well. "The simple logic there is that as people downsize their housing, they need some place to store their stuff," said Mike Kirby, director of research for investment-research firm Green Street Advisors.
Another positive note of mention is that apartment REITs can borrow from the government-backed lenders Fannie Mae and Freddie Mac. This is a stable source of capital which is unavailable to other REIT classes.
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Real-estate investment trusts rallied in the first quarter. These were driven by strong gains in two of the industries that are benefiting from the housing bust. Eight of the top 10 performers last quarter by way of total returns -- a combination of stock-price appreciation and dividends -- were apartment or self-storage REITs.
Because people are moving from homes they can't afford into apartments and their belongings into self-storage units, both these industries are doing well. "The simple logic there is that as people downsize their housing, they need some place to store their stuff," said Mike Kirby, director of research for investment-research firm Green Street Advisors.
Another positive note of mention is that apartment REITs can borrow from the government-backed lenders Fannie Mae and Freddie Mac. This is a stable source of capital which is unavailable to other REIT classes.
WSJ Subscriber only report »
