WASHINGTON, DC-REIT returns surrendered in November some of theground they have made this year, dipping slightly. The FTSE NAREITEquity REITs Index lost 1.96% and the FTSE NAREIT All REITsIndex lost 1.62%, while the S&P 500 gained 0.01%, industryassociation NAREIT reported.

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In a video posted to the association’s web site, vice presidentof research and industry information Brad Case attributesthe decline to investor concerns about the strength ofthe recovery and hesitancy about the growing debt problems inEurope. Also, he said, even bull markets have an ebb and flow inreturns.

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That all said, REITs have delivered stronger returns toinvestors than the general equity market for the year, NAREITsays. REITs have nearly tripled the performance of the S&P500 Index in the first 11 months, with the FTSE NAREIT Equity REITIndex posting a 22.25% total return and the FTSE NAREIT All REITsIndex posting a 21.88% total return for the same time period. Bycontrast, the S&P 500 has delivered a 7.86% totalreturn.

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Top-performing sectors include multifamily (up 41.04%),free-standing retail (up 35.28%), regional malls (up 32.65%),lodging/resorts (up 31.29%) and shopping centers (up 23.56%).

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Residential mortgage REITs are also attracting attention frominvestors because of their strong dividend yields, Case said. Ingeneral, he added, momentum among REIT investors are building onthe sense that the worst is over for the commercial real estateindustry.

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