U.S. poet Robinson Jeffers wrote, "The future is ever a misted landscape, no man foreknows it, but at cyclical turns there is a change felt in the rhythm of events." Heading into 2005, Portfolio asked numerous analysts their projections for where the industry was headed. Their forecasts ranged from 16 percent total returns to a decline of 10 percent. A misted landscape indeed.

Heading into 2006 analyst expectations once again vary. Questions linger over what cyclical turn might lie ahead as REITs look to outperform for a seventh-consecutive year. Trying to interpret the rhythm of events, a panel of leading industry authorities discussed their outlook for the coming months at NAREIT's Annual Convention. In this issue you will find a transcript of their discussion that sheds some light on what investors should expect in 2006 and beyond.

Speaking of the future, the ability to predict the future and position oneself for its arrival are common traits among the great business, political and military leaders in history. This foresight and ability to capitalize upon it have been trademarks of William Sanders' career in real estate.

Take this anecdote about Sanders from former colleague R. Scot Sellers, NAREIT chair and chairman and CEO of Archstone-Smith, as an example. After returning from a particularly exciting U.S. Open tennis match, Sanders was asked how the match was and commented that it was fantastic, not because of the tennis action, but because he had had a very positive conversation about the future of the business.

A true pioneer, Sanders, the latest in our series profiling executives who helped "pave the way" for the industry's success, has embarked on his latest venture, Verde Realty, with the same dedication as his past enterprises. The man responsible for founding LaSalle Partners and Security Capital Group sheds some light on his real estate career, how he plans to make Verde a success and what he thinks the future holds for the industry.

Also in This Issue

Analysts remain optimistic about the long-term prospects of United Dominion Realty Trust. "United It Stands" looks at the strategic changes that have already taken place and outlines the company's five-year plan for future growth.

In "Capital Markets," author and investment icon David Swensen shares his views on real estate investing and the market in general. Longtime REIT investor Ralph Block offers his six predictions for '06 in this issue's "In Closing." Also, Global Real Analytics CEO Richard Wollack debunks some myths about REITs and interest rates in "Professional Perspectives."

Matthew Bechard
Editor in Chief