NEW YORK CITY-With the Dow Jones Industrial Average up only a couple of hundred points for the year, the S&P 500 down more than 4%, the Nasdaq down over 10%, and the Morgan Stanley Real Estate Index (RMS) at or near its all-time high of 387, many investors continue their to put their money into REITs. With 8% growth projected for REITS this year and next, the equity research analysts at Lehman Brothers are raising their projected end-of-year price target for the RMS.

They are now projecting a 2001 close for the Index at between 410-430, up from 400-420, which translates into a 17% annual return. Analysts David Shulman and Stuart Axelrod have raised their price targets for many high-yielding, small-cap REITs while reducing them a bit for trusts will large development programs. High-quality, lower-yield REITs still get their recommendation. No changes have been made to company ratings.

Among the changes: TrizecHahn, which traded on June 13 at $17.49 and had surpassed its old price target of $17, has a new target of $19; AMLI Residential ($23.88) has been moved up from $24 to $25; Equity Residential ($55.95), near its old target of $56 is now expected to hit $58; and SL Green ($29.17), now has a target of $33; up $1.

Firms with unchanged target prices include Equity Office ($30.36) at $36, Mack-Cali ($28.05) at $29, and Prentiss Properties ($26) at $29; those with lower targets include Reckson Associates ($22.92), to $27 from $28, and Boston Properties ($20.69) from $50 to $48.

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