Insiders Outed

In the third quarter, insiders sales volume at REITs was over $150 million for the fourth consecutive quarter. For the year, insider sales are up 60 percent over 2004 levels, according to Lehman Brothers. Retail REIT heads have been frequent culprits in this trend. Executives at General Growth Properties, Vornado Realty Trust, Pennsylvania REIT, Simon Property Group, Kimco Realty Corp. and Cousins Properties all sold shares in the three-month period between July and September. While the bulk of the activity represented the cashing out of vested options, about one third of transactions were not.