REIT Shares Ripe for Slowdown

As the REIT industry gathers this week in Chicago for the annual National Association of Real Estate Investment Trusts convention, the mood will be more subdued than in past years.

Earnings misses, interest rate fears and concerns over expensive valuations have dragged down the sector in recent weeks, leaving investors to wonder if the magnificent bull run that REITs have enjoyed over the past five years is coming to an end.

Ever since the tech sector imploded in 2000, REITs have trounced the broader market. Individual investors flocked to the sector as commercial real estate was viewed as a safe investment that paid healthy dividends on their 401(k) and IRA dollars. ...