MUMBAI (Thomson Financial) - US real estate investment trusts (REITs) face moderating operating performance and sound but weakening financial profiles in 2008, according to Fitch Ratings. 'Well-capitalized REITs with capacity to consummate transactions without having to access the capital markets will be prominent acquirers of assets,' said managing director and REIT group head Steven Marks. Fitch's primary concerns going into 2008 remain commercial and residential mortgage REITs, which have negative outlooks. 'The ability of these companies to access adequate sources of financing at an attractive cost have been severely hindered by the reduced liquidity in structured finance markets,' said Marks. Though the outlook remains stable for retail REITs, Fitch is more cautious over concerns of an economic slowdown and declines in consumer consumption. The agency added that marginal GDP growth and muted job growth will create a more challenging office leasing environment in most markets for office REITs, which also have a stable outlook. Fitch also maintains a stable outlook for health care, multifamily and lodging REITs. TFN.newsdesk@thomson.com jro COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News. Neither the Subscriber nor AFX News warrants the completeness or accuracy of the Service or the suitability of the Service as a trading aid and neither accepts any liability for losses howsoever incurred. The content on this site, including news, quotes, data and other information, is provided by AFX News and its third party content providers for your personal information only, and neither AFX News nor its third party content providers shall be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon.
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