US REITs move higher on economic growth, less gloom - News

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US REITs move higher on economic growth, less gloom

By: AFX | 29 Oct 2009 | 03:40 PM ET

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By Ilaina Jonas NEW YORK, Oct 29 (Reuters) - Shares of U.S. real estate investment trusts rose after preliminary data showed third-quarter U.S. economic growth was the strongest since 2007, and encouraging comments by a big apartment landlord. The benchmark MSCI U.S. REIT index was up 4.8 percent on Thursday afternoon, with some of the biggest REIT companies seeing large jumps in their shares. Equity Residential said the tight credit markets that have brutalized the sector for more than a year have noticeably relaxed and that properties in some of its markets have begun to improve. Shares of Equity Residential were up 5.8 percent in afternoon trading Thursday on the New York Stock Exchange. Other big gainers were mall owner Simon Property Group Inc , the largest U.S. REIT, which was up 6.2 percent. Simon is scheduled to report results on Friday. Office owner Vornado Realty Trust, which is scheduled to report next week, saw its shares rise 6.4 percent. Office owner Boston Properties, which reported earnings earlier this week saw its shares rise 6.7 percent. "Earnings calls are going on and they're pretty much in line, and guys are probably not calling a recovery, but they're indicating the rate of deterioration is slowing," said Tim Pire, managing director overseeing public real estate securities investment for Heitman LLC. The stocks were also helped on Thursday by data that showed the U.S.

economy grew at a faster-than-expected 3.5 percent annual rate in the third quarter, snapping four down quarters. U.S. stocks were broadly higher, with the Dow Jones Industrial Average up 2 percent in afternoon trading. (Reporting by Ilaina Jonas; Editing by Tim Dobbyn) Keywords: REITS/SHARES (ilaina.jonas@thomsonreuters.com ; +1 646 223 6193; Reuters Messaging: ilaina.jonas.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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