Update on Our Three Best Buys in Real Estate Investment Trusts

Article Excerpt

Real Estate Investment Trusts (REITs) have moved up lately, but are still down from last year’s highs. That’s mainly due to fears that slowing consumer spending will hurt cash flows. However, top-quality REITs continue to have high occupancy rates and rising lease rates. As well, lower interest rates will help REITs fund their expansion plans. We still advise against overindulging in Real Estate Investment Trusts. But if you stick with the highest quality, like the Real Estate Investment Trusts we recommend on this page, you should make attractive long-term returns with relatively low risk. RIOCAN REAL ESTATE INVESTMENT TRUST $21.51 (Toronto symbol REI.UN; SI Rating: Average) is Canada’s largest REIT (Real Estate Investment Trust). RioCan has ownership interests in a portfolio of 227 retail properties across Canada, including 15 under development. These properties contain over 59 million square feet of leasable area. Portfolio occupancy stands at 97.0%. RioCan’s revenue in the three months ended June 30, 2008 was $169.9 million, up 7.1% from…