Just like the Dow, REITs weren’t feeling so hot last month. Amid concerns of the Chinese economy and heavy interest rates, the total returns of the FTSE/NAREIT All REIT Index fell 5.7% in August while the S&P 500 Index dropped 6%. Robert W. Baird senior analyst David Rogers says REITs were weighed down by the widening US credit markets. Landenburg Thalmann managing director Daniel Donlan says the market’s volatility seems to be effecting every sector (well, not every sector), but expects it all to calm down once the Fed makes a clear decision about interest rates. However, many are unsure when it plans to make that decision. But Donlan is confident in REITs’ appeal to investors, saying that, despite their poor performance, they still look good compared to 10-year Treasuries, which fell flat last month. In addition, Chilton Capital Management portfolio manager Matt Werner says REITs have been less volatile in the last 10 years than the S&P. That said, until there is noticeable macroeconomic improvement and a better credit market, Werner says, REITs still may not be in the clear. [NAREIT]