In a related field, any REITs worth buying now?
S&P is neutral on the real estate investment trust industry, following strong gains in the industry last year. We expect office REITs to experience firming occupancy rates, as we view employment levels as likely to recover. Retail REITs should enjoy rent growth on expected high occupancy rates, due to our projection of further solid retail sales and consumer sentiment. Lodging REITs are seen recovering as travel and tourism shake off terrorism fears and recessionary pressures. We think, however, residential REITs will continue to be hurt by robust single-family home sales, while health-care REITs face potential tenant bankruptcies. The primary factors to consider in evaluating a REIT security, in our view, are the stock’s current dividend yield, its long-term dividend growth rate, and its payout ratio of funds from operations. We currently favor Hospitality Properties Trust (HPT ), with its dividend yield of nearly 7%. Q: While you’re at it, tell us S&P’s current thoughts on asset allo
