CHICAGO—Although general economic conditions and failure toqualify as a REIT remain the risk factors mostlikely to keep investment trusts' leadership up at night, theexecutives have also been paying more attention to risks stemmingfrom operating expenses and costs of capital improvements. That'samong the findings of locally based BDO USA LLP inits “2014 BDO RiskFactor Report forREITs,” based on analysis of the most recent 10-K filingsfrom the 100 largest publicly traded companies in the sector.

The report found OpEx and CapEx in 82% of the 10-Ks this year,up from 77% in 2013. Also on the rise were concerns about thefinancial health of tenants, cited by 79% as a risk factor,compared to 75% the year prior.

Competitive issues continue to rank third, though, behindconcerns about economic fundamentals and the risk of failing toqualify as REIT or make distributions to shareholders. For thesecond year in a row, REITs' 10-Ks cited worries about competingfor tenants or prime real estate. In 2012, third place was taken byworries about the inability to acquire capital or financing.