Investors in the volatile REIT sector should stick with the biggest, best-capitalized outfits, including Simon Property Group (SPG) and Vornado Realty Trust (VNO); Taubman Properties (TCO), which runs upscale malls; Boston Properties (BXP), an owner of prime office buildings in New York and Washington; Public Storage (PSA), the top owner of self-storage facilities, and AvalonBay Communities (AVB), a high-end apartment owner.

Investors in the volatile REIT sector should stick with the biggest, best-capitalized outfits, including Simon Property Group (SPG) and Vornado Realty Trust (VNO); Taubman Properties (TCO), which runs upscale malls; Boston Properties (BXP), an owner of prime office buildings in New York and Washington; Public Storage (PSA), the top owner of self-storage facilities, and AvalonBay Communities (AVB), a high-end apartment owner.

Investors in the volatile REIT sector should stick with the biggest, best-capitalized outfits, including Simon Property Group (SPG) and Vornado Realty Trust (VNO); Taubman Properties (TCO), which runs upscale malls; Boston Properties (BXP), an owner of prime office buildings in New York and Washington; Public Storage (PSA), the top owner of self-storage facilities, and AvalonBay Communities (AVB), a high-end apartment owner.

Investors in the volatile REIT sector should stick with the biggest, best-capitalized outfits, including Simon Property Group (SPG) and Vornado Realty Trust (VNO); Taubman Properties (TCO), which runs upscale malls; Boston Properties (BXP), an owner of prime office buildings in New York and Washington; Public Storage (PSA), the top owner of self-storage facilities, and AvalonBay Communities (AVB), a high-end apartment owner.

Kirby considers the sector "fairly priced" after the gains since March and says "the one defining feature of REIT performance is that companies with less leverage have dramatically outperformed the ones with high leverage." He points to the strong standing of Public Storage, which has the industry's second-highest market value at $11 billion, after Simon's $13 billion. Public Storage has almost no debt; preferred stock accounts for about 25% of its capitalization. It is REITland's closest thing to a Berkshire Hathaway.

Investors in the volatile REIT sector should stick with the biggest, best-capitalized outfits, including Simon Property Group (SPG) and Vornado Realty Trust (VNO); Taubman Properties (TCO), which runs upscale malls; Boston Properties (BXP), an owner of prime office buildings in New York and Washington; Public Storage (PSA), the top owner of self-storage facilities, and AvalonBay Communities (AVB), a high-end apartment owner.

There are a bunch of REIT funds, including Vanguard REIT Index (VGSIX). Then there are exchange-traded funds, including iShares DJ U.S. Real Estate (IYR), which yields 7%. Investors also can play preferred shares issued by Public Storage and other realty trusts that yield 8% to 11%. The REIT-preferred market, totaling about $10 billion, is much smaller than the bank-preferred sector, making it better suited to individuals than institutional buyers.

There are a bunch of REIT funds, including Vanguard REIT Index (VGSIX). Then there are exchange-traded funds, including iShares DJ U.S. Real Estate (IYR), which yields 7%. Investors also can play preferred shares issued by Public Storage and other realty trusts that yield 8% to 11%. The REIT-preferred market, totaling about $10 billion, is much smaller than the bank-preferred sector, making it better suited to individuals than institutional buyers.