The market for real estate investment trusts (REITs) continues to look strong, but analysts at UBS Warburg warn that things may not stay that way. A recent report, "REITSearch Fundamentals: Spreads Shades of 1997," refers to the "good old days" of 1997 that, like today, saw narrow REIT margins.

However, by 1998, spreads had widened by 250 basis points. Analysts speculate that something similar may happen today, although there are no signs that the REIT market is deteriorating.

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