On the whole, Friday’s boost enabled REITs to post gains on the week. REIT ETFs RWR and VNQ are up 2% and 3% respectively compared to last Friday’s close.

The outlook going forward is far from clear.  Fitch is forecasting a tough year for REITs invested in malls and shopping centers as well as industrial and office properties, but foresees multi-family and healthcare REITs faring better.  Wachovia rates the healthcare REIT sector Overweight citing, in part, their stronger balance sheets and expected increased government spending. They single out Nationwide Health Properties and Senior Housing Properties Trust as REITs that should do well.

Not everyone agrees, though.  Greenstreet Advisors is forecasting a challenging environment for REITs specializing in healthcare properties. They argue that since a substantial percentage of this sector’s income comes from senior-living facilities, low property values might make it more difficult for seniors to sell their homes to finance a move into such a facility. Furthermore, with unemployment rising, more seniors might opt to move in with family instead of a facility to save money. Greenstreet expects this to put near-term downward pressure on Ventas, HCP, and Nationwide Health Properties.

Nationwide is up 10% over last Friday’s close, Senior Housing Properties is up 7%, Ventas is up 15%, and HCP is up 4%.

In other news:

• Cambridge Industrial Trust (Singapore) secured $262 million in financing
• American Land Lease Inc. is being acquired for $438 million.
• Investors are looking to pick up the pieces of Japan’s shattered REITs, including New City Residence Investment Corp
• MHI Hospitality Corp. cut next year’s annual dividend 70 percent
• Saul Centers announced that it will be cutting its dividend due to rising delinquencies in its retail properties.
• Fitch sees imminent defaults at General Growth Properties

Despite the uncertain future, some people are thinking it might be time to buy .