By Robert Liebman

Several weeks after REITs made their debut in the UK, the dust is starting to settle. And in this calmer clearer air, the initial fuss and excitement seem overblown.

With a large chunk of REITs profits going directly to shareholders - profits enlarged by generous tax breaks - REITs look like sure-fire winners, in theory.

In reality, REITs seem to be just another form of equity trading in a world in which shares can go down, as well as up - and in which entire companies - and entire REITs - can go bust.

Most importantly, the dividends generally available at present - both in UK, US and other foreign REITs - are not necessarily better than the returns available to direct property investors.