For Immediate Release

Chicago, IL – October 23, 2009 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the REITs sector, including American Capital Agency Corp. (AGNC), Fannie Mae (FNM), Freddie Mac (FRE), Vornado Realty Trust (VNO) and Simon Property Group Inc. (SPG).

Here is the latest on the REITs sector:

The credit freeze will have a positive effect on commercial real estate down the road; new office, apartment and retail construction has slowed considerably, which will benefit owners in a couple of years. Many companies that we cover have stopped all-new construction.

In this environment, we like well-capitalized companies that have adequate liquidity and manageable near-term debt maturities. Currently, we are bullish on American Capital Agency Corp. (AGNC), a mortgage REIT that invests exclusively in agency securities for which the principal and interest

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Amid positive signals emanating from the uptick in housing prices and an improving outlook for consumer spending, the housing sector is gradually stabilizing. Both new and existing home sales have increased during the last four consecutive months and are now 32% and 17% above their recent lows, respectively. Single-family housing starts have also risen 37% from their low point, and inventories of homes-for-sale have fallen sharply.

Equity REITs rebounded nicely in the third quarter, recording total returns of 33% (total return FTSE NAREIT Index) vs. a 15% gain each for the S&P and the Dow. The strong third quarter returns marked the second consecutive record-setting performance of equity REITs after a dismal performance in the first quarter of 2009.

In what has been a volatile year, equity REITs gained approximately 29% (total return FTSE NAREIT Index) in the second quarter after falling 32% in the first quarter. So far in October, equity

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Amid positive signals emanating from the uptick in housing prices and an improving outlook for consumer spending, the housing sector is gradually stabilizing. Both new and existing home sales have increased during the last four consecutive months and are now 32% and 17% above their recent lows, respectively. Single-family housing starts have also risen 37% from their low point, and inventories of homes-for-sale have fallen sharply.

Equity REITs rebounded nicely in the third quarter, recording total returns of 33% (total return FTSE NAREIT Index) vs. a 15% gain each for the S&P and the Dow. The strong third quarter returns marked the second consecutive record-setting performance of equity REITs after a dismal performance in the first quarter of 2009.

In what has been a volatile year, equity REITs gained approximately 29% (total return FTSE NAREIT Index) in the second quarter after falling 32% in the first quarter. So far in October, equity

...

Amid positive signals emanating from the uptick in housing prices and an improving outlook for consumer spending, the housing sector is gradually stabilizing. Both new and existing home sales have increased during the last four consecutive months and are now 32% and 17% above their recent lows, respectively. Single-family housing starts have also risen 37% from their low point, and inventories of homes-for-sale have fallen sharply. Equity REITs rebounded nicely in the third quarter, recording total returns of 33% (total return FTSE NAREIT Index) vs. a 15% gain each for the S&P and the Dow. The strong third quarter returns marked the second consecutive record-setting performance of equity REITs after a dismal performance in the first quarter of 2009. In what has been a volatile year, equity REITs gained approximately 29% (total return FTSE NAREIT Index) in the second quarter after falling 32% in the first quarter. ...

Equity REITs rebounded nicely in the 2nd quarter, when equity REITs posted total returns of 29% (total return FTSE NAREIT Index), vs. a 15% gain for the S&P and an 11% gain for the Dow. So far in July, REITs are down about 8%; the worst performing sectors in July have been Regional Malls (-10.9%), Industrial (-9.8%), office/industrial (-9.6%) and apartments (-9.7%). Overall, REITs are still down 19% YTD in 2009 and 43% over the past year.

OPPORTUNITIES

Many REITs are still trading at discounts to NAV (net asset value), a good buy signal. Historically, over the past seven or so years, REITs have traded near or in excess of NAV.

Even with dividend cuts and share price gains, the average yield for equity REITs is still near 6%. Yields are well in excess (280 bps) of the 10-year Treasury, although the spread has narrowed considerably over the past quarter.

Most companies have been

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Equity REITs rebounded nicely in the 2nd quarter, when equity REITs posted total returns of 29% (total return FTSE NAREIT Index), vs. a 15% gain for the S&P and an 11% gain for the Dow. So far in July, REITs are down about 8%; the worst performing sectors in July have been Regional Malls (-10.9%), Industrial (-9.8%), office/industrial (-9.6%) and apartments (-9.7%). Overall, REITs are still down 19% YTD in 2009 and 43% over the past year.

OPPORTUNITIES

Many REITs are still trading at discounts to NAV (net asset value), a good buy signal. Historically, over the past seven or so years, REITs have traded near or in excess of NAV.

Even with dividend cuts and share price gains, the average yield for equity REITs is still near 6%. Yields are well in excess (280 bps) of the 10-year Treasury, although the spread has narrowed considerably over the past quarter.

Most companies have been

...

Overall spending on construction declined 0.9% in May from April to a seasonally adjusted annual rate of $965.0 billion. On a year-over-year basis spending is down 11.6%. This means that there has been no real change in the rate of contraction in spending.On a year-to-date basis, spending is down 11.7%. Private construction was once again the culprit as public spending (stimulus?) was up by 0.6%. Private construction spending was down 1.0% for the month and is off 17.4% on a year over year basis.Surprisingly, within public spending, educational construction was up 0.5% and highway spending was down 1.3%. Within private spending, the decline was all due to the residential side, which was down 3.4% for the month and is off 33.9% year over year. Non-residential construction actually inched up 0.5% and is off just 3.3% on a year over year basis. The graph below (from ...

Equity REITs have rebounded nicely over the past few months. So far this quarter, equity REITs have posted total returns of 36% (total return FTSE NAREIT Index). All sectors are up in the 2nd quarter; the best performing sectors were lodging (102%), regional malls (68%), shopping centers (42%), and industrial (37%).

Overall, REITs are still down 7% in 2009, vs. a drop of 3% in the Dow and a gain of 2.8% in the S&P.

OPPORTUNITIES

* Many REITs are still trading at discounts to NAV [net asset value], a good buy signal. Historically, over the past 7 or so years, REITs have traded near or in excess of NAV * Even with dividend cuts and share price gains, the average yield for equity REITs is still over 6%. Yields are well in excess (300 bps) of the 10-year Treasury, although the spread has narrowed considerably.

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Equity REITs have rebounded nicely over the past few months. So far this quarter, equity REITs have posted total returns of 36% (total return FTSE NAREIT Index). All sectors are up in the 2nd quarter; the best performing sectors were lodging (102%), regional malls (68%), shopping centers (42%), and industrial (37%).

Overall, REITs are still down 7% in 2009, vs. a drop of 3% in the Dow and a gain of 2.8% in the S&P.

OPPORTUNITIES

* Many REITs are still trading at discounts to NAV [net asset value], a good buy signal. Historically, over the past 7 or so years, REITs have traded near or in excess of NAV 

* Even with dividend cuts and share price gains, the average yield for equity REITs is still over 6%. Yields are well in excess (300 bps) of the 10-year Treasury, although

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