Spring/Summer AEW Report Deems REITs in Good Shape

BOSTON-The Spring/Summer REIT Report put out by AEW Capital Management, LP indicates that over the next year to year and one half REITs will outperform most areas of the equity market. The locally based real estate investment advisory firm prepared the report with its in-house research team.

According to the report, despite the softening economy, real estate continues to perform well. REITs in particular, notes the report, offer strong relative value. For the year 2000, the Morgan Stanley REIT Index was up 26.8%. The Index had a 7% total return just in December.

“Our thinking is that capital markets have been anticipating a worse situation than there really is,” Michael Acton, vice president of AEW Capital Markets and principal author of the report tells GlobeSt.com. As far as the main REITs in this area, Acton points to Boston Properties and Equity Office Properties as two companies that are highly regarded and good indications of REITs that offer good value. “The biggest REIT exposure here is in the office sector,” he notes.