After a few months of slumping, the real estate funds traded on Wall Street were the top earners in August. Rising 4.46 as a group in the month, real estate funds shook off the bad news that had been plaguing them as the strong companies took off while the weaker ones continued to struggle.
Corporate Office Properties (OFC) was up 16 percent for the the month which led the pack. Office property and retail still remained strong while apartment REITs lagged the market.
It was their first top finish since January. It ended a three-month skid in last place.
Among all sectors, real estate was hurt the least by latest fallout from the subprime lending meltdown and credit crunch. It had already had a meltdown of its own, having skidded 11.21% the past three months to be down 7.48% for the year. That’s the worst among sectors.
Investors figured out that most real estate funds’ holdings weren’t hurt in August by the residential mortgage-oriented crisis, said Richard Imperiale, manager of the $51 million Forward Progressive Real Estate Fund FFREX. via CNN Money
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