3 Interesting Industrial REIT Players for 2013: Prologis Inc (PLD), Digital Realty Trust, Inc. (DLR)

The performance of industrial REITs is improving slowly in the US market, and slow and steady growth is expected for 2013 as well. Growing credit trends, a shortage of new property and high retention rates are strongly supporting this sector. A majority of Industrial REITs in Europe have large portfolios with exceptional assets and acceptable debt levels. More stabilized economic conditions will ensure a positive trend in the growth of industrial REITs.

Conclusion

Industrial REITs have seen a strong growth during 2012. This sector is expected to grow further in the coming years. It is slowly developing as an investment alternative for less risky securities like bonds. Investors are refraining from investing in bonds because of their very low interest rates. On the other hand, industrial REITs are providing very good dividends and are comparatively less risky than other investment alternatives.

The success of companies like Prologis, Digital Realty and DCT Trust is attracting new market players. The sector is expanding and promises stable growth patterns in the times to come. The US industrial property market is strengthening, and industrial absorption rates have been positive for more than a year now. As GDP is expected to return to more stable levels, investments in real estate supported by long term industrial leases can deliver high risk adjusted returns.

The article 3 Interesting Industrial REIT Players for 2013 originally appeared on Fool.com and is written by Sujata Dutta.

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