By Steven Marks, Head of U.S. REITs for Fitch Ratings
The outlook for U.S. equity REITs remains on solid footing as we begin the second half of this year. That said, positive rating momentum is unlikely for the foreseeable future.

By Steven Marks, Fitch Ratings

The rating outlook for U.S. equity REITs remains stable, thanks largely to expectations of strong capital markets access, continued de-risking of issuers’ balance sheets and strategies, expectations of relatively unchanged coverage metrics and a strengthening asset sales environment.

By Steven Marks, Fitch Ratings

After harnessing liquidity for defensive measures most of the last year, liquidity positions of U.S. equity REITs have strengthened considerably and will likely do so into 2011. As a result, most Fitch-rated REITs can now take a much more proactive stance toward growing their businesses. With ample liquidity, these REITs are now positioned to consider property acquisitions and other growth-oriented activities.

By Steven Marks, Fitch Ratings:

After withstanding a difficult year of operating fundamentals in 2009, property fundamentals have begun to trend positively for retail REITs, which now have a stable outlook through 2011.

By Steven Marks, Fitch Ratings

Industrial REITs are more highly levered than any other REIT property type. Despite steps to curb leverage, levels remain high and will remain so without added de-leveraging initiatives.

By Steven Marks, Fitch Ratings:

Office vacancies remain high, with a near-term peak likely, and the operating environment for office properties is unfavorable and figures to be for the foreseeable future. Despite these numerous credit negatives, Fitch Ratings’ outlook for office REITs is stable. The primary reason is that most office REITs have fared better than the market generally due to higher-quality portfolios and strong management and leasing teams.

By Steven Marks, Managing Director & Head of U.S. REITs, Fitch Ratings: As property fundamentals bottom out, signs of visible recovery are now in place for multi-family REITs, along with solid liquidity and capital markets access. This is precipitating a stable outlook for multi-family REITs through next year.