How Much Stress Can REITs Withstand?

As real-estate investment trusts wind up their second year of deteriorating markets and dwindling rents, investors are asking: How much more financial stress can REITs withstand?

1 minute read

November 13, 2002, 1:00 PM PST

By Chris Steins @planetizen


The answer: It's getting a little close for comfort... For the first three quarters of this year, REITs paid an average dividend of 7%, according to the National Association of Real Estate Investment Trusts, the Washington-based trade group, compared with an average dividend of 1.95% for companies in the Standard & Poor's 500 stock index. That helps draw investors to REITs. But when dividends are threatened, many of those investors tend to flee. The issue has huge implications for real-estate stocks.

Thanks to REIS, Inc.

Tuesday, November 12, 2002 in REIS

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