REITs That Are Looking Good Right Now (AVB, EXR, CBL)

With the U.S. economy beginning to improve, the commercial real estate sector continues to show its leadership. Funds like the iShares Cohen & Steers Realty Majors ICF have shined over the last few months as U.S. office vacancies have been coupled with increases in rental rates. This trend has not been seen in nearly three years. With the CRE space still offering value, investors may want to take a look at some REITs that offer strong dividends. Here are a few picks. Management at apartment REIT Avalonbay Communities AVB is very optimistic that 2011 will be a year of strong growth for the company. The REIT predicts that rental revenue will grow in all regions and FFO to be in the $4.50 to $4.75 per share range. Shares of Avalon yield 3%. The self storage sector has been making impressive strides since the beginning of the recession, returning nearly 30% in 2010. Extra Space Storage EXR recently reported a 17% increase in FFO. Shares of EXR yield 2.9%. With the U.S. consumer beginning to return, strip mall operator CBL & Associates CBL could be a good bet. CBL recently received a buy recommendation from ZACKS and yields 4.8%.