Last January, we spoke with Michael Torres, CEO of Adelante Capital Management, who recommended investors diversify their portfolios by investing in commercial real estate through real estate investment trusts (REIT). Torres believed the sector was poised for growth due to a strengthening economy and the sector’s orderly recapitalization following the Great Recession. Here is how his recommendations fared.

AvalonBay Communities (N YSE: AVB) is an owner and developer in the multifamily housing space. The company reported a record $251.4 million in revenue for the fourth quarter, an 11 percent increase from a year ago. Net income jumped from $26.7 million to $323 million, with much of that spike resulting from the sale of three of its rental communities. Torres remains positive on the company’s prospects. Shares of AvalonBay have gained 30.2 percent since recommendation.

Lodging provider Hersha Hospitality Trust (N YSE: HT) lost 11.5 percent since recommendation. Torres says he may swap this name for DiamondRock Hospitality (N YSE: DRH), another lodging-focused REIT. DiamondRock owns a portfolio of 26 premium hotels in metropolitan areas across the US. The company’s earnings grew 186 percent to $5.3 million in the fourth quarter versus the year-ago period, while sales rose 23 percent to a record $223.3 million. Management’s cost-cutting efforts played a large part in these impressive results.

Health care REIT Nationwide Health Properties was acquired by Ventas (N YSE: VTR) in a $7.6 billion stock-for-stock transaction that closed last July. Including the premium in the deal’s offer, shares of Nationwide Health Properties returned 19.4 percent since recommendation.