Strong performance of US REITs set to continue

U.S.

US REITs have delivered solid performance in 2010, up 5.6% year-to-date as of 30 June 2010.

There are a number of reasons why we believe this strong performance will continue for the remainder of the year. After a period of severely limited activity, REITs regained access to the equity markets in 2009 via secondary offerings, the proceeds of which were generally used to shore up balance sheets by paying down debt. The market viewed REITs’ ability to access equity and, soon thereafter, debt markets, as a sign of improving fundamentals, such as balance sheet and cashflow strength, dividend increases, and the ability to make future acquisitions. This relative stability for REIT...