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REITs Fall With Rest of Market

The falling housing market and resulting impact on the financial market continues to take its toll on Real Estate Investment Trusts. 

Today, General Growth Properties Inc. traded down as much as 50%, leading REITs lower again, according to the Bloomberg article “General Growth Leads REITs Down on Debt Concern“.

The difficulty in obtaining credit, falling real estate values and concern over the slowing U.S. economy have sparked declines in real estate investment trusts over the past year. High gas prices and job cuts by employers have left analysts concerned over retailers and mall operators and led to a 40 percent drop in the 27-member Bloomberg REIT Retail Index over the past year through yesterday. The index fell as much as 7.7 percent today.

While the REITs performance is bad, the entire S&P index lost 5.74% today, as well.  The contagion has not been limited to real estate related securities.

Tags: debt concern, market   Posted in News