Do you remember on "The Price is Right" when every contestant would wildly overbid for some washing machine or living room set and then the last person would smile like the Cheshire Cat after bidding just $1? Even though they were hundreds of dollars off the actual retail value, they were the ones who got to come on down and meet Bob Barker. Well, the 2004 Real Estate Portfolio Stock Challenge was just like “The Price is Right." All of the participants underestimated the price REITs would fetch in 2004 and, as a result, the most optimistic of a cautiously optimistic bunch was the winner when it came to forecasting the year-end value of the NAREIT Equity REIT Index.

That in no way shortchanges Barry Vinocur's win. In fact, it takes strong convictions to be at the extreme end of any forecast range, especially to forecast partly sunny skies when everyone else is predicting a thunderstorm.

The year-end predictions from the eight participants in the 2005 Stock Challenge run the gamut from solid returns to no gain and even a slight decline. At the high end of the range is 17 percent growth and at the bottom end is a 2.5 percent decline. To read what Vinocur and fellow 2004 Stock Challenge winner Ross Nussbaum (who combined with former Banc of America Securities colleague Lee Schalop to win the portfolio portion) think will impact 2005 performance, read “Exceeding Expectations."

Also in this issue, “Mutual Admiration" provides insight from leading mutual fund managers in regard to where they see REIT returns heading and what factors will impact the industry in 2005 and beyond. The article includes a ranking of REIT mutual fund and closed-end fund performance provided by Lipper.

Reader Survey

In 2002 we conducted a reader survey to determine what our readers wanted and expected from Real Estate Portfolio. The feedback was invaluable in helping to refine the editorial content of the magazine and to make Portfolio the leading source for information on investing in REITs and publicly traded real estate.

And now we need your assistance once again. Many of you will soon be receiving our new reader survey in the mail. We ask that you take the time to complete the brief survey and return it to us with your candid opinions. Positive or negative, feedback is beneficial. We want to hear from you with what you like and dislike about Portfolio and how we can continue to improve the magazine. If you do not receive a survey in the mail and have thoughts you'd like to share, please e-mail me at mbechard@nareit.com. My inbox is always open, and I look forward to hearing from you.

Matthew Bechard
Editor-in-Chief