Outlook for REITs in 2010.

I came across some video clips on YouTube where professionals talked about the outlook for REITs in 2010.  Some make good sense and I would like to share a couple of clips here with you:


 
I like their advice on how we should focus on the balance sheets of REITs as well as their acknowledgement that a low gearing level is safer in case real estate values are revised downwards again.  Can't usually go wrong being conservative when it comes to gearing.  For those of us who are in the know, treat this as a reminder.



Re-capitalisation exercises hit REITs big time in Singapore in 2009.  Off the top of my head, I remember forking out more money for MI-REIT and FCOTs' rights.  Re-capitalisation exercises have strengthened REITs and with the improving credit market, with funds more readily available at lower cost, I rather think that REITs will continue to do well in 2010 and 2011. 

What do I look out for in a REIT?  Low gearing, high yield and preferably trading at a discount to NAV.