REIT Returns Slow in Second Quarter

Real estate investment trusts, which have become the darlings of investors over the past three years for their strong returns, are beginning to lose some of their luster, the Wall Street Journal reported. Citing data from the Dow Jones All REIT Index, which tracks 133 trusts, the sector returned just 4 percent in the second quarter, down from 10.5 percent in the first quarter and 15 percent in the fourth quarter of last year.

Tall Order in the Big Easy

A 25-year-old real-estate investment trust, which has sparked some criticism for its strong appetite for acquisitions, has agreed to buy New Orleans's tallest skyscraper for $107 million, according to people familiar with the property.

CommonWealth REIT, of Newton, Mass., is buying the 51-story office building named One Shell Square from MetLife Inc., the people said. CommonWealth and MetLife declined to comment on the deal.

The deal reflects the pressure many buyers are facing to push into new territories for buildings as competition has made major market bargains scarcer. "Things have been getting a little more challenging," John Popeo, CommonWealth's chief ...

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