WASHINGTON, DC-The National Association of Real EstateInvestment Trust’s biannual pulse of their industry show that REITssuffered a setback with the stock market volatility earlier thisspring, but are still outperforming the larger market. Also, thesecompanies continue to raise debt and equity in significant amounts.Unlike last year, though, this capital raising is largely geared toacquisitions--and thus it is unclear whether it will continue ifacquisition opportunities don’t materialize in the second half ofthis year.

According to NAREIT’s Mid-Year report, REITs raised $22 billionin initial debt and equity capital offerings so far this year.Also, the FTSE/NAREIT index showed a 10.23% compound annual totalreturn in June for the previous 12 months. Indexes measuring thetotal stock market for the same time period contracted by1.59%.

It is not surprising that REITs are outperforming by suchdramatic levels, says NAREIT general counsel Brad Case. "REITsrepresent 10% of the entire commercial real estate community, butthey are the healthiest part of that community. They have hadaccess to capital and didn’t get themselves into trouble," he tellsGlobeSt.com.