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Local REITs have strong 3Q showing

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While there has been a slowdown in the market, some major players, namely real estate investment trusts, showed a healthy recovery so far in the third quarter.

In the first half of the third quarter, which ended August 15, the Dow Jones Equity All REIT index — a composite of the stock performance of all publicly traded U.S. REITs tracked by Dow Jones — showed a 5.3 percent gain, an impressive rebound that comes close to covering its 6.1 percent loss in the second quarter.

The REITs with large holdings in New York performed well on an individual basis over that period as well.

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Vornado Realty Trust was up 16.2 percent, bolstered by news in late July that construction could begin as early as next year on a skyscraper to rise above the Port Authority bus terminal, a project in which Vornado is a partner.

SL Green — which signed one of Manhattan’s largest office leases of the quarter when it brought accounting firm BDO Seidman into a 121,441-square-foot space at 100 Park Avenue — was up 6 percent in the first half of the third quarter.

The company’s stock also rallied after reporting in late July that its office occupancy increased 40 basis points to 96.7 percent in the second quarter, while its funds-from-operations rose 59 percent.

Boston Properties showed a 10.2 percent leap in stock value since June 30, after announcing a 1 percent gain in funds from operations in the second quarter, during which it announced its joint purchase with a private Dubai-based investor of the $3.95 billion office tower package that included the GM Building, 540 Madison, 125 West 55th Street and Two Grand Central Tower.

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