Ralph Block,
Chief REIT portfolio manager,
Bay Isle Financial
"Within our organization there has been an increased interest in REITs from our general equity funds (non-dedicated to REITs). For example, our newest small-cap value fund has decided to invest about 10 percent of its assets in medium and small-cap REITs, and another new fund, Equity Income, will quite certainly own REIT shares. This would not have been the case two years ago.

"[However], I do think that more needs to be done. There is still a wide 'understanding deficit' regarding REITs and REIT investing. Most investors, both institutional and individual, still do not understand the dynamics of the REIT industry. REIT investments, for example, are woefully under-represented in 401(k) plans, which should be a natural place for them."

Rick Imperiale,
Portfolio manager, Forward
Uniplan Real Estate Fund
"There is certainly more interest in the REIT sector now that the tech craze is over. I have had long discussions with a number of portfolio managers who want me to give them some broader background on REITs. Normally they ask me what are my three or four favorite (REIT stocks) and why. I know some of them, particularly in small-cap funds, have moved some of their portfolio into the sector.

"However, I think the industry needs to do more to help investors understand the benefits of owning REITs in a portfolio. Most [investors] don't understand the non-correlated asset benefit of REITs. I suspect that they are 'fair-weather friends' of REITs and when the broader market recovers, their interest in REITs will end. We need to provide some education that will change the temporal attitude."

Steve Brown,
Managing director,
Neuberger Berman, LLC
"We believe many more generalist equity fund managers now own REITs or consider them for investment. At Neuberger Berman, managers who focus on small caps, mid caps and large caps all own equity REITs.

"As for the industry needing to do more in this area, I think we must be continually vigilant in broadcasting the REIT story. Many pundits may try to latch onto REITs now, but often they pass on as much bad information as good."

Kelly Rush,
Director–portfolio management,
Principal Capital Management
"Within our organization, I work closely with several general equity fund managers. I have seen a distinct increase in their interest in REITs during the past 12 months. The underlying reasons for this are strong relative performance and increasing index inclusion. While some interest will fade as relative performance cools, REITs have now assumed a permanent place on many general equity fund manager's radar screens.

"The responsibility for doing more [to reach a broader investor base] belongs to the REITs themselves. Investors have been pleasantly surprised in that most life-long private market operators have adapted to the public arena. There is no marketing campaign large enough to replace the impact management can have by continuing to do 'the right thing.' No amount of arm-twisting can replace credibility earned by effectively allocating capital, operating with integrity and maintaining a focus on public shareholder interests rather than personal gain."