I don't care about the stock prices of the various REITS, but I do care about the distributions. Many of the large US REITS were vastly overpriced and should return to the mean, and maybe below for a while. Simon Property Group (SPG) got WAY too expensive for my taste as I will never buy a REIT not paying out at least 5.5-6%. IT could be a good buy at some pont since no new malls are being built. We shall see. Problem for IGR is reduction in distributions by the REITS it holds. My theory in buying IGR was that the international holdings will offset some weakness in the US. IMHO, the dollar will really start to decline against most other currencies, so those foreign REITS payouts will be enhanced from the US holders perspective. We shall see. Personally, I would not buy any US based REIT that was not payong out at least 7-8%, and maybe in this market environment 10-12%.
Let me just add that I checked the holdings of IYR and in my opinion IYR would have to get down to 32 before I would give it a serious look. I'm no short, but the yields have to increase on these big REITS since the underlying real property will not be increasing in value any time soon in all probability. So for many investors the distribution yield will be all that matters since the growth part will stagnant for 5 or 6 years. The only way for the yields to increase is for the price to go down, probably around 50%, imho. Not trying to be alarmist, just pragmatic. The problem is that many of these REITS just got way too pricey. I still think IGR is a good play due to the international exposure. But I could be wrong about everything.