By R. Scot Sellers

This is an exciting time for the publicly traded real estate industry, as the strength, stability and investment benefits we provide have become widely recognized by investors, and our industry has gained increased visibility and respect. With 36 NAREIT member companies currently included in the Standard and Poor’s indices, including nine in the S&P 500, we are now an important component of mainstream corporate America.

It is a great privilege to serve as NAREIT’s chair for the coming year. I will work hard to continue the legacy of excellence established by past chairmen, including last year’s chair, David Simon, as well as recent chairs Hamid Moghadam, Steve Roth, Bill Sanders and Sam Zell.

David’s work on the globalization of the real estate industry has been very significant, as we have developed a strong, productive relationship with the International Accounting Standards Board (IASB), and our relationship with the European Public Real Estate Association (EPRA) has grown considerably. In addition, our recent agreement with FTSE to expand the visibility and distribution of the FTSE EPRA/NAREIT Global Real Estate Index offers exciting promise for the future. David, on behalf of the entire industry, I want to thank you for your hard work, dedication and the great job you did as NAREIT’s chair this past year.

All of us are very fortunate to have exceptional executive leadership at NAREIT. Steven A. Wechsler, our president and chief executive officer, and his very capable NAREIT team have helped build and solidify our industry’s political presence at the federal, state and local levels. The NAREIT team has built strong relationships with key legislators and members of the administration, which allow us to continue important progress on our industry’s legislative priorities.

In addition, REITPAC is now a significant political action committee. Through September, REITPAC has raised more than $630,000 in 2005. And with 2006 being an important election year, we should all work hard to ensure that REITPAC sets a new record for contributions in the coming year.

In the coming year as NAREIT chair, my primary focus will be to work with the team at NAREIT to continue to enhance our outreach to the investment community in an effort to further expand the visibility and presence of our member companies. Though we have made considerable progress in this area, only 15.6 percent of all 401(k) plans currently offer a real estate option, according to the Profit Sharing/401(k) Council of America (PSCA). With these plans representing more than $2.7 trillion of investable capital, this offers a significant opportunity for all of us.

I also look forward to expanding the excellent progress made on the globalization of our industry, including working with the recently formed Asian Public Real Estate Association (APREA), and continuing our industry’s support of EPRA.

NAREIT’s success is enhanced by your involvement. I look forward to your suggestions and ideas, as well as your strong support of our key priorities for the coming year, including expanded support for REITPAC.

This is a tremendously exciting time for our industry, and I look forward to serving as NAREIT’s chair as we continue to move forward together.

R. Scot Sellers
NAREIT CHAIR
CHAIRMAN & CEO, ARCHSTONE-SMITH