REITs Prevail Over Naysayers

This time last year, many experts were saying that the remarkable REIT bull run was sure to end in 2005. Hopefully you didn't listen to them.

For the sixth year in a row, REITs are set to outperform the broader stock market. Low long-term interest rates, improving commercial real estate fundamentals and a lackluster stock market have kept investors' cash within the sector.

Year to date, the NAREIT Equity REIT Index -- which includes all publicly traded REITs except mortgage REITs -- is up 11.7% on a total return basis. Compare that to the S&P 500, which is up 5.8% on a total return basis. ...