NEW YORK CITY, CA-Reports by ratings and research agencies based here see relative stability in office REITs for now, but anything can happen in these uncertain economic times. Those outlooks are reflected in recent earnings reports by REITs, with some maintaining their profit levels and others struggling.

Moody’s Investors Service says that although it maintains a generally negative outlook for the office property sector is negative, its outlook for office REIT ratings remains stable. “As office market fundamentals continue to weaken, we expect office REITs to experience earnings pressure,” Moody’s says in a recent report. The firm also expects development pipelines to slow considerably in light of the current economic climate. Fitch Ratings sees the office REIT sector as stable and “unchanged since the beginning of the year.”

Among the REITs delivering steady profits lately is Pasadena, CA-based Alexandria Real Estate Equities Inc., which last week reported that funds from operations rose 6% per share for the third quarter ended Sept. 30, compared with the third quarter of last year on revenue that climbed 13% and total FFO that was up 14%. The FFO total was nearly $49 million or $1.53 per share.

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