American investors are pouring their cash into real estate investment trusts (REITs), according to Alternative Asset Analysis (AAA) and the Wall Street Journal newspaper.
Boston, MA, November 20, 2011 - American investors are pouring their cash into real estate investment trusts (REITs), according to Alternative Asset Analysis (AAA) and the Wall Street Journal newspaper.
AAA, which advocates investing in alternative asset classes that help to diversify portfolios in these uncertain economic times, has welcomed figures showing a rise in interest in real estate as a lucrative investment choice.
Some $6 billion has been invested so far this year in publically traded REITs. This represents an increase of 18 per cent on last year’s investment levels and a remarkable 400 per cent rise from 2009’s levels.
The US-based trusts typically buy up real estate such as shopping malls, apartment buildings and other commercial property. This type of property is seeing stronger recovery rates and the investors are keen to get involved while the market is beginning its upward trend.
AAA’s analysis partner Anthony Johnson, said, “We are always pleased to hear that investment in an area of alternatives is on the up and it seems that US-based REITs are proving irresistible to those looking to diversify their investment portfolios and protect against risk.”
AAA supports a number of different alternative asset classes, with focus on some of the more ethical choices around the world. Impact investing is becoming increasingly popular, while investing in green projects such as forestry plantations in developing countries – like Greenwood Management’s Brazilian forestry investment projects, also attract praise from AAA's analysts.
Speaking about alternatives, Lois Carrier of Carrier & Maurice Investment Advisors, told the Wall Street Journal, "When almost everything else is down, you usually count on these wild cards to be up.”
For example, the FTSE Nareit All Equity REITs index for October recorded a return of over 7 per cent, compared with a much more subdued 1 per cent return recorded by Standard & Poor’s 500-stock index for the same period.
Contact:
Anthony Johnson
Alternative Asset Analysis
71 Commercial St
Boston, MA 02109-1320
617-939-9596
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