May 15, 2008 12:12PM

Commercial Real Estate Picks

By Cheryl Casone

Today Phillip Martin joined us for the Noon hour of Fox Business. Guys, what do you think of the new show? Come on! You are usually very vocal about what you like and don’t like!

We had a packed show, and we didn’t get to Phillip’s REIT picks. First, a quick note from his research I found interesting:

“Commercial real estate and equity REIT fundamentals remain healthy, unlike residential real estate. We want to stress that poor equity REIT share price performance of late is due primarily to credit market dislocation and not weak commercial real estate and equity REIT fundamentals. We believe tighter credit markets and an overall cleansing process will be a positive and remove the excesses, but feel equity REIT share price declines have been overdone and do not properly reflect healthy fundamentals, such as revenue growth potential, positive supply and demand,dividend security and yield, flexible balance sheets and capital structures. We feel healthy fundamentals should allow equity REITs to successfully weather a tougher credit market and/or a slower economic environment”

Here are his REIT picks plus video of the segment:

Alexandria Real Estate Equities (ARE-$102.40)

Health Care REIT Incorporated (HCN-$47.69)

Realty Income Corporation (O-$25.53)

Kite Realty Group (KRG-$13.75)

Ramco Gershenson Properties Trust (RPT-$22.47)