Asia and Europe’s public markets continue to outperform the North American REIT market. However, global REIT markets continue to cope with the credit crunch — according to “Riding out the storm: Global Real Estate Investment Trust Report 2008,” released today, the total market capitalization of publicly-listed REITs around the world reached nearly $605 billion, as of June 30, down from $764 billion a year earlier.
“It remains to be seen when REIT markets will stabilize,” says Michael Frankel, global director of REIT Services for Ernst & Young. “REITs in Asia have been the best performers for the 12-month period ending June 2008 in terms of one- and three-year returns. With China planning to launch a pilot REIT program next year, there is likely to be renewed interest in the public REIT sector in Asia.”