Bear Stearns Real Estate Investment Trusts Report

JANUARY 2006
Bear Stearns REIT Analyst:

Ross Smotrich, of Bear Stearns, was asked about REIT expectation for the 2006. We are expecting 6% growth in earnings and 8% in 2007. We will continue to see some consolidation--it's very logical, given the evolution of the industry. But we don't see a tidal wave. Looking at returns by property type for 2005, self-storage came in at 23%, malls--18.7%, multifamily--14.4%, industrial--13.6%, offices--13%, hotels--10% and shopping centers 9.5%. Commercial mortgage REITs were essentially flat. Going into 2006, we're looking for a total return of between 10% and 12%. Valuations are rich, so we don't see much multiple-expansion coming. CLICK HERE TO READ MORE.