This year’s REITWeek attracted approximately 2,000 participants, setting a new attendance record. This number included representatives of 150 REIT management teams, as well as banks, sell-side analysts, rating agencies and the financial media. However, the great majority of these participants were investors who came from throughout the United States and around the world to seek out value in today’s REIT marketplace.

These investors recognize that the REIT marketplace has been a consistent, long-term generator of value. At more than $400 billion, the industry’s equity market capitalization is up more than $60 billion from its level just 12 months ago. But the story of value creation in the REIT market extends back much farther than the past year. The returns of the FTSE NAREIT Equity REIT Index have beaten other major equity benchmarks for the past 3-, 5-, 10-, 15-, 20- and 30-year periods.

Additionally, for these knowledgeable investors, REITs provide the critical benefit of portfolio diversification. The average correlation between monthly equity REIT returns and those of the S&P 500 has been just 36 percent during the Modern REIT Era, from 1993 through 2006. No other component of the stock market approaches REITs in terms of the combination of long-term performance and lack of broader market correlation that they deliver.

These are the factors—along with REITs’ liquidity, transparency, and strong, reliable income generation—that drew approximately one thousand investors to REITWeek 2007, and that will continue to attract long-term investors to our securities in all market and interest rate climates.

The REIT story increasingly is becoming a global one—a fact that also was apparent at REITWeek. Twenty nations now have their own REIT legislation. In the first six months of this year, the U.K., Germany and Italy all became members of this group, and more nations will follow.

I view this globalization trend as extremely positive for U.S. REITs, as well as those being created in other countries. All will benefit from the increased global investment flows that will result from the establishment of the REIT as the global brand for securitized real estate investment.

Art Coppola
NAREIT CHAIR
CHAIRMAN & CEO, THE MACERICH COMPANY