Real estate trusts (REITs) have had excellent rebounds off their lows last year. After the Dow Jones REIT Index closed at 86 (on March 6, 2009), it shot up 138% by Friday (May 14). Gains were fairly steady except for a lull period in the fall and early winter. Then a second surge in the last 3 months took the index to its 203 close.

Hard assets of REITs (land and property) have generally held their values through one of the most difficult periods in American history. General Growth Properties (GGP) was the only REIT which had to file for Chapter 11, but is finalizing plans to emerge from bankruptcy. Its stock is trading higher than other REITs which did not to file for bankruptcy and pay dividends. The REITs worked hard to get through the recession. Rental income has been under pressure from higher vacancy rates and expenses were held in check (including their #1 expense, interest). Now an economic recovery is bringing improved business results.