nta, page-18

I reckon the fundies are making a big big mistake selling off REIT stocks..

Doing Well
http://seekingalpha.com/article/97414-despite-credit-crisis-some-reits-are-doing-well
September 25, 2008

US Real Estate Investment Trusts seem to be faring quite well in the current credit crisis, a new report from Fitch Ratings indicates.

“Over the past several months, even as the capital markets have remained inaccessible to most U.S. equity REITs, sources of liquidity (cash, available credit facility borrowings, and retained cash flows from operating activities) less primary uses of liquidity (near- term debt maturities and future capital expenditure spending) have generated a liquidity surplus. Certain larger REITs continue to lead the industry, others have meaningfully improved their liquidity profiles, and some REITs continue to have liquidity shortfalls,” Fitch says. Large REITs that have improved their liquidity position include HCP, (NYSE: HCP); Apartment Investment and Management Co. (NYSE: AIV); and Sovran Self Storage (NYSE: SSS)”

Fitch continues to believe that, for most U.S. equity REITs, sources of liquidity exceed uses of liquidity in the near term.

“Many equity REITs are well positioned to address short-term cash requirements, as many have available committed amounts under their unsecured credit lines before violation of a financial covenant contained either in the companies’ unsecured bond indentures or credit line agreements.”