By Art Coppola

Since this is my last column as NAREIT's 2007 chair, I want to take this opportunity to say it has been a privilege to serve our industry over the past year. It has been a year of challenge for the capital markets and for REITs specifically. However, it has also been a year of real accomplishment for us.

In spite of the market downturn, NAREIT has actively taken the REIT story to the investment community this year and has found a responsive audience for it. Since the beginning of the year, we've had 20 outreach visits to major investment organizations to discuss why REITs are part of the real estate asset class, and why they deserve a portfolio allocation in all market climates.

We took our story to decision makers at the largest pension funds such as CalPERS and CalSTRS, as well as major defined contribution plan providers. Our message is a compelling one, and it has been well received.

For institutional investors that hold real estate through commingled funds and opportunity funds, NAREIT has another strong message: three different independent studies find that investing through REITs outperforms other forms of real estate investment by 30 percent. We have started developing this information into a presentation that we will take to the highest-level decision-makers at the largest pension funds.

We also made progress in the policy and politics area. The REIT Investment Diversification and Empowerment Act (RIDEA) was introduced in the last Congress and was reintroduced in February. This legislation, which would update and rationalize a number of the REIT rules, was introduced by Representatives Joe Crowley (D-NY) and Eric Cantor (R-VA), among others, and it now is co-sponsored by more than two-thirds of the House Ways and Means Committee.

In August, a companion bill was co-sponsored by Senator Orrin Hatch (R-UT), who introduced the legislation in the last Congress, and Senators Ken Salazar (D-CO), Gordon Smith (R-OR), and John Kerry (D-MA).

As a founding member of the Coalition to Insure Against Terrorism, NAREIT has actively supported the Terrorism Risk Insurance Revision and Extension Act of 2007. This legislation was passed in August by the House Committee on Financial Services, where it was co-sponsored by Chairman Barney Frank (D-MA) and Representative Michael Capuano (D-MA). The bill will be taken up by the full House membership this fall.

Additionally, we've had an outstanding REITPAC contribution made this year with a record-breaking $740,000 as of Sept. 1.

As these examples illustrate, NAREIT's work on behalf of our industry and this year's achievements are part of a continuum of commitment and effort. I want to thank all of our members, especially our Board of Governors and Executive Committee, for their leadership and support. I also want to thank Steve Wechsler and the executive staff of NAREIT who working together as a team have helped make NAREIT the recognized leader on policy, politics, investment and financial strategies both here in the U.S. and around the globe.

Most importantly, I want to pay special tribute to the leaders of NAREIT who have served as chair of this organization that I have been privileged to know in my dozen years on the Board of Governors. The leadership, advice and support of industry icons provided great motivation to me to continue to engage and involve myself with the activities of this great organization. I encourage all of you to participate in NAREIT's activities and to help it to continue its role as the recognized leader on real estate, political, policy, investment and financial strategies. I look forward to seeing all of you at NAREIT's 2007 Annual Convention in Las Vegas November 14 through 16.

Art Coppola
NAREIT CHAIR
CHAIRMAN & CEO, THE MACERICH COMPANY