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Fitch Ratings

Fitch: Struggle to Outlast Lagging Fundamentals Continues for Equity REITs

Published in Healthcare Finance, Tax and Law Weekly, October 28th, 2009

Despite some recent positive momentum for U.S. equity REITs, liquidity concerns and deteriorating property fundamentals will continue to pose challenges, according to Fitch Ratings in the latest edition of its 'REIT Report Quarterly'.

'Commercial real estate fundamentals typically lag the economy so continued weakness in REIT operating performance is likely in spite of recent opportunistic actions by some REITs to reduce financial pressures,' said Managing Director and U.S. REIT group head Steven Marks.

Fitch notes that the global economic recovery has begun, as detailed in its Oct. 1 'Global Economic Outlook'. However, Fitch maintains the...

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