BusinessWeek Logo
Stock Screens November 21, 2008, 12:01AM EST

Stock Screen: Finding the Right REITs

S&P's latest list features its top-ranked real estate investment trusts

By Beth Piskora From Standard & Poor's Equity Research

partner logo

It's been a tough real estate market, but S&P Equity Research is still enthusiastic about select real estate investment trusts (REITs). Since the beginning of November, S&P equity analysts downgraded CBL & Associates (CBL) to 3 STARS (hold) from 4 STARS (buy) and Kimco (KIM) to sell from hold, reflecting the difficult operating environment for REITs.

But short-term pain could turn into long-term gain, especially for the 4- and 5-STARS (strong buy) REITs featured in this week's list.

"The harsher credit environment and weak economy has forced some REITs to scrap or halt their development plans," explains Robert McMillan, an S&P REIT equity analyst. "New retail and industrial space had already started declining before the September/October credit crisis (due to higher construction costs), but should plummet in 2009. Long term, this should have positive implications for the larger REITs by giving them better pricing power."

Here is S&P's list of 4 STARS and 5 STARS-ranked REITS:

Company Ticker S&P STARS Rank
Alexandria Real Estate ARE 4

American Campus Communities ACC 4

Equity Lifestyle Properties ELS 4

Essex Property Trust ESS 4

Macerich MAC 4

Mack-Cali Realty CLI 4

National Retail Properties NNN 4

Nationwide Health Properties NHP 4

Plum Creek Timber PCL 4

Regency Centers REG 4

Simon Property Group SPG 5

Sun Communities SUI 4

Taubman Centers TCO 4

Piskora is managing editor of U.S. Editorial Operations for Standard & Poor's .

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure

Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.

Reader Discussion

 

BW Mall - Sponsored Links