Bloomberg: Federal Realty Investment Trust FRT.N posted better-than-expected quarterly funds from operations (FFO), helped by higher average contractual rental rates, but forecast fiscal 2009 FFO below Wall Street estimates.

Bloomberg: The vacancy rate at U.S. office buildings will rise to 16.7 percent this year and could reach an 18-year high next year as tenants cut jobs and try to sublet space, property research firm Reis Inc. said.

Retail Traffic: Despite the challenging marketplace, regional mall REITs posted a respectable performance in the fourth quarter of 2008. With more than half of the seven REITs reporting so far, two beat analysts’ consensus estimates and two missed; primarily due to impairment charges on suspended projects. Those halted developments will likely bode well for the companies’ long-term health, say analysts.

The Street: The other day, my buddy and I were talking about the housing crisis and “the great unwind.” Everyone from Jim Cramer to Bill Gross believes markets cannot turn around until we find the bottom in housing. We are all so nervous about asset deflation that nobody wants to own anything. The housing market, in particular, is in paralysis. Policymakers have the seemingly competing aims of “protecting the homeowner” and “getting the securitization market functioning again.”

RightSide Advisors: Average REIT yields in the U.S., Canada and Australia now significantly exceed average yields for bank CDs and U.S. Treasuries. Whether you’re nearing retirement or just seeking some income for your portfolio, REITs are increasingly worth looking into

Global Pensions: REITs have come a long way in 15 years and offer investors advantages over traditional forms of real estate investment. However, this does not seem to have translated into popularity among investors. Andrew Sheen investigates why

Forbes:  A Keefe, Bruyette & Woods Inc. analyst upgraded his stance on the apartment real estate investment trust sector to “Neutral” from “Underweight” based on its strong first quarter and improving fundamentals in the marketplace.

USA Today:  While the bad economic news is still out there, at least one REIT is betting that the mortgage crisis yet has an untapped silver lining — and went public Tuesday to prove it.

Forbes:  Mall real estate investment trust General Growth Properties Inc. said its first-quarter funds from operations dropped nearly 55 percent, but beat Wall Street’s expectations.

New Ratings:  Analysts at RBC Capital Markets reiterate their “outperform” rating on Washington REIT (WRE), while raising their estimates for the company. The 12-month target price has been raised from $36 to $39.