Despite a 13% jump on Friday, Developers Diversified closed the week down 17% compared to last Friday’s close. General Growth Properties dropped 3% on the week while Cedar Shopping Centers jumped 19% on Friday to close out the week up 22%.

REIT ETFs RWR and VNQ are up 3% and 8% respectively compared to last Friday’s close.

In other news:

• Fitch said delinquencies on commercial property mortgages dropped last month because of an increase in loan extensions. It was the first drop in delinquencies since July. Still, Fitch expects delinquencies to rise, especially with mortgages tied to retail and hotel properties.

• First also noted that liquidity for REITs was weakening and warned downgrades were coming for REITs with liquidity shortfalls if funding markets didn’t reopen.

• FBR Capital Markets upgraded its ratings on Corporate Office Properties Trust and Washington REIT to outperform.

• CBRE Realty Finance, Inc. suspended its dividend.

• Several lodging REITs cut their dividends.

• Potlatch Corp. completed the spin-off of its pulp-based businesses.

• First Industrial Realty Trust lowered its earnings forecast by $0.55 a share and announced it will be discontinuing its European operation.

• Republic Properties Corp. has filed suit against Liberty Properties Trust.

• Hong Kong politicians proposed their government buy shares in the country’s Link REIT to prevent rental increases but the motion was voted down.

• Japanese home builder, Daiwa House industry Co. stated it believes the REIT market there will take 3-5 years to recover. Last June, Daiwa House cancelled plans to raise money through a REIT IPO and recently announced plans to sell houses at a loss to generate cash.

As we approach the final two weeks of 2008, REITs are closing out an unprecedented year. Long considered a way to diversify from the volatility of stocks, REITs performed very similar to equities this year, moving in tandem with both their losses and gains. Green Street Advisors estimates that REITs are currently trading at 30% below net asset value, but reminds investors that it’s difficult to accurately assess value in the current market, given the dearth of transactions that can be used as benchmarks.