REITs RETREAT?

In a stumbling market, realestate investment trusts (REITs)hung tough until last year, but someanalysts are beginning to wonderwhether there are more good timesahead. Office vacancy rates are onthe rise and hotels have been hithard by the economic downturn,along with fears of terrorism andthe looming war with Iraq. And,although it's far from becoming law,President Bush's proposal to cuttaxes on dividends could hurtREITs, since their dividends willstill be taxed. One bright spot maybe apartment REITs. Althoughmany apartment renters are takingadvantage of the lowest mortgagerates in decades to become homeowners,lower rents and higherinterest rates in the future maymake renting a better economicdecision than buying, and sparkrenewed demand for apartmentunits. For more information onREITs, visit www.nareit.com.