iStar Financial Inc.New York, NY, United States (NYSE: SFI)

Global Report Points to US Problems - The global REIT market is catching up to the US market because many US REITs were heavily impacted by the subprime mortgage crisis, according to Ernst & Young. Ernst & Young's annual look at REITs notes growth in Asian and European REITs, while over 20 US REITs have shut in the past year because of subprime mortgages. However, global markets haven't escaped negative impacts: the value of REITs worldwide is off 21 percent as of the end of June 2008 compared to one year earlier.

Weakness to Continue in Commercial Real Estate - The National Association of Realtors (NAR) predicts continued weakness in commercial real estate, which is made worse by a tight credit market that holds up potential sales and purchases of property. The number of transactions in the sector was off 70 percent in second quarter 2008 compared to one year earlier. NAR also predicts rising vacancy rates in office and industrial space, which may further impact REIT performance.

Consumer Spending Worries Impact Mall, Shopping Center REITs - The recent troubles of major US retailers are in part responsible for weakening forecasts about shopping center and mall REITs, which rely on healthy consumer spending. Industry experts note that REITs focused on malls and shopping centers have seen declining stock prices in 2008, and likely face additional constraints as the economy remains weak. Experts also point to trends that show that consumers will continue to spend less in coming months, negatively impacting REITs, as retailers struggle to make rent payments.