Jeffrey Olson, 38 president and chief executive officer Equity One, Inc. Education B.S. from the University of Maryland; M.S. in Real Estate from Johns Hopkins University

Olson's first job out of college was working in management consulting for Reznick, Fedder & Silverman, a CPA firm. As it turned out, a number of the firm's clients were real estate owners and developers. In the mid-1990s, Olson switched to the other side and began working for a developer. "I have known Jeff for almost 10 years and have watched him excel in his professional career," says Chaim Katzman, chairman of Equity One. "He is a gifted and natural leader. I look forward to what our company can achieve under his leadership."

Portfolio: What do you like about real estate as an investment?

Olson: I like retail real estate as an investment due to its stability and growth.

The stability is primarily a result of its high barriers to entry, long term leases and low tenant turnover. The growth is derived from contractual and percentage rent increases, the expiration of below market leases, operational efficiencies and redevelopment opportunities.

Portfolio: Do you prefer managing existing shopping centers or building new ones?

Olson: My favorite investment is redeveloping existing shopping centers. It's good for our communities to keep shopping fresh and exciting. It also produces the highest investment returns with minimal risk. Since we already own the land, we are already experts on our existing properties and community support is generally high. We don't have to invest our money until we have municipal support and commitments are in place from our retailers.

Portfolio: A lot of REITs have been taken private lately. What are your thoughts on this trend line?

Olson: I believe the trend will continue. Low cost joint venture equity, maturing REIT management teams and the high costs of being public will continue to drive consolidation.

Lisa Palmer, 38 senior vice president/capital markets Regency Centers Corporation Jacksonville, Fla. • NYSE: REG Education B.A. from the University of Virginia; MBA from the Wharton School of the University of Pennsylvania

There are definite benefits to being in the right place at the right time, says Lisa Palmer, looking back on her career at Regency. When she joined the company in 1996, Security Capital Group had just made a strategic investment in the company of $250 million and the company doubled in size. "I just happened to get in on the ground floor," she says. Then she elevated quickly up the company's capital markets unit, making a name for herself with Wall Street. "Lisa Palmer is an industry leader in terms of her relationships with investment bankers and lenders. She has helped Regency tremendously with its joint ventures," says Dan Sullivan, managing director at Wachovia Securities.

Portfolio: How did you get into real estate?

Palmer: I was working at Accenture Ltd., and my parents were living in Jacksonville. I saw a lot of growth and exciting things happening in the city, so I targeted Jacksonville as a place I wanted to relocate. Regency was one of the companies that popped up on my radar, which was fortunate because someone I knew from the University of Virginia was on the company's board at the time.

Portfolio: What was your first job at Regency?

Palmer: I started as manager of investment services group, which supported acquisitions through market research and underwriting. I moved into the capital markets position in 1999 and became senior vice president in 2003.

Portfolio: What are your responsibilities?

Palmer: I have two primary areas of responsibility. The first is truly capital markets, which is public and private debt and equity, investor relations and being the primary contact with the entire investment community including shareholders, investors, potential investors, analysts and investment bankers. Secondly, I manage Regency's three major strategic partnerships and a few other single-asset joint ventures, which includes accounting and reporting. I also oversee major operational decisions and future investment opportunities.

Portfolio: How do you grow a company like Regency?

Palmer: We have the largest development program in our sector. We are the leading developer of grocery-anchored and community shopping centers in the country. As of August 2006, Regency boasts $770 million of development projects in process and a $1.8 billion pipeline.

Portfolio: Several REITs such as Regency have moved to joint ventures. Why is this a good strategy?

Palmer: If you think about the real estate industry, institutional investors have hired advisors to serve as asset managers. Now they also co-invest directly instead. It eliminates the middleman and the REIT receives the asset management fee, which enhances the REIT's return on investment. For example, we partner directly with the state of Oregon. We were one of the first to do these kinds of joint ventures. The reason REITs choose this strategy is that it is cost effective. You can grow with minimum equity. We all know the market does not want REITs to be serial issuers of equity. To that extent you recycle your capital and grow the company.

Advice for the Next Generation of REIT Executives

In 2004, a slew of REITs changed leadership as older chief executives officers, many of whom were founders, either retired or left active management but retained board chairmanships. They handed the CEO position to younger executives and thus began a new generation of REIT leadership.

Two years into their new positions, Portfolio checked back with some of the CEO class of 2004 to get their views on what the newest generation of REIT executives will need to succeed.

Various analysts have noted that a serious shift in globalization has occurred in the REIT industry, and this includes not just the growth of REIT-like vehicles in other countries, but a move by American REITs into foreign investments. For example. companies like Simon Property Group (NYSE: SPG), ProLogis (NYSE: PLD) and AMB Property Corporation (NYSE: AMB) all have investments overseas.

Dennis Oklak, chairman, president and CEO of Duke Realty Corporation (NYSE: DRE), takes this seismic activity into consideration. "Within the next year or two, as the industry starts looking at what is going to be required of an executive, global experience or at least global knowledge will be important."

Oklak is not alone in thinking globally. Thomas Toomey, president and CEO of United Dominion Realty Trust Inc. (NYSE: UDR) adds that the next generation of REIT executives will need an ability to impact events around world through the business of real estate.

Except for a handful of companies, there isn't a lot of global experience in the REIT industry right now, cautions Gordan DuGan, president, director and CEO of W. P. Carey & Co. LLC, so one thing that might happen is that a future REIT executive will come from another country. "The next generation of leaders is going to have to think globally, source talent globally and may they, themselves, need to be sourced globally," he says.

That scenario still might be a bit far in the future, so for near-term requirements DuGan suggests the next generation of REIT executives will have to be financially adroit. "REITs have become more diverse and more sophisticated. They have added significant joint venture income to corporate and are investing in a variety of things including the securities of other real estate companies. The business models are becoming more varied and more complex."

It's not enough to have the skills to successfully buy a building and manage it well, DuGan stresses. "You have to be able to manage that increasingly sophisticated business model."

Given the increasingly global business environment and fast pace of technological change, the next generation of executives will have to combine this balanced skill set with boundless energy, a high degree of flexibility and a willingness to constantly learn and grow, notes Christopher Nassetta, president and CEO of Host Hotels & Resorts Inc. (NYSE: HST).

The personality assets that will remain consistent, whether managing a REIT today or in the near future, is a solid foundation of management, communication skills and honest effort, Nassetta says. "The next generation of real estate executives, like the current generation, will be successful by leading from a foundation of strong values, including, most importantly, the highest levels of integrity. The greatest success will be achieved by those with very balanced skills and experience, including a strong financial and real estate background, excellent communication and inter-personal skills and strong organizational and motivational skills."

Actually, Oklak adds, these value strengths of executives "don't change from generation to generation."

Joseph Padanilam, 39 senior vice president/acquisitions and dispositions Developers Diversified Realty Corporation Beachwood, Ohio • NYSE: DDR Education B.S. from the University of Notre Dame; MBA from Washington University

Joseph Padanilam was born in India and lived there through second grade when he came to the United States for the first time. After two years, he returned to India and then came back to the United States for sixth grade and has been here ever since. Basically, Padanilam is a heart and soul Midwesterner—he grew up in a small town south of Toledo, Ohio, attended universities in Indiana and Missouri, and now works in Ohio— with the dedication and hard-work values of someone who comes from the center of the country. "Joseph manages a very active acquisitions/dispositions program. He has a solid understanding of risk/return, enhanced by clear communication skills," says Michael Kirby, principal and director of research at Green Street Advisors Inc.

Portfolio: How did you get into the REIT business?

Padanilam: I was with PriceWaterhouseCoopers working under William Schafer. He went to Developers Diversified as chief financial officer. He asked that I work on the DDR account, and after a few years, I joined him at DDR.

Portfolio: Did you start out in acquisitions?

Padanilam: I was hired into DDR as the vice president of tax with the understanding that I would get on the deal side. At first, I ran the tax department, corporate budgeting and managed transactions. Eventually, I became vice president of investment and planning. In March 2006, I became senior vice president of acquisitions and dispositions.

Portfolio: Which do you prefer: acquisitions or dispositions?

Padanilam: Acquisitions. There's no question. I like the thrill of the deal, negotiating it, getting it done and closing. Acquisitions are definitely harder than dispositions. Getting the type of assets we want is harder and the market is competitive, which makes the dealmaking much more interesting. On the disposition side, we are selling assets that are too small for us or challenged. It's a different universe of buyers.

Portfolio: Is Developers Diversified going global?

Padanilam: We took our first step in November 2004 by acquiring 15 shopping centers in Puerto Rico from the Caribbean Property Group, LLC for $1.15 billion. Although Puerto Rico is a commonwealth of the United States, it forced us to learn how things are done differently elsewhere. We realized there would be some adjustment, so we hired the former property managers of the company we acquired and this provided a bridge for us to further learn the intricacies of the market and operating outside of the U.S. mainland.

Portfolio: Are there other countries DDR are looking into?

Padanilam: We are looking at many different international opportunities including China. I spent two months recently looking at various markets, from Dubai (United Arab Emirates) to European markets. We also looked at Mexico. The key in going to these markets is finding the right partner, someone credible and with a track record who we can rely on for day-to-day operations.

Portfolio: What's ahead for the REIT industry?

Padanilam: The modern REIT industry started in the early 1990s, so we are still in the infancy stage. The industry will see a lot more mergers and consolidation. It's only a matter of time before the $1 billion and $2 billion REITs are acquired.

Brian Nickel, 33 chief financial officer American Campus Communities, Inc. Austin, Texas • NYSE: ACC Education B.S. from Northwestern University

After growing up in Bartlesville, Okla., Brian Nickel moved to Chicago to attend university and then stayed on as his early jobs were in the city's financial industry. His first stop was at the old Kidder Peabody investment banking concern as an analyst. Unfortunately, the famous Joseph Jett scandal in the mid-1990s weakened the firm and it was sold off. Across town, LaSalle Partners liked his analyst skills and hired him. Nickel's solid analytical skills serve him well to this day. "Brian was instrumental in taking American Campus public in summer 2004 when REIT IPOs were having difficulty pricing. He has also completed large acquisitions, and helped build a development pipeline to drive the future growth of the company," says Anthony Paolone, REIT analyst at JP Morgan Inc.

Portfolio: How did you get into the REIT business?

Nickel: I was working in the Chicago offices of LaSalle Partners when we were engaged by American Campus to raise capital to buy student housing. I was the analyst for that engagement and got to know William Bayless (ACC's president and CEO). Meanwhile, I got accepted at the University of Texas in its MBA program, so I bugged Bill for a job figuring I would then be attending the university as an in-state student if I worked for ACC in Austin. I deferred that acceptance three times and then let it go.

Portfolio: How did you rise to the rank of CFO?

Nickel: I was hired as director of development in 1996, but ACC was a small company and we were in the trenches. I really just operated as Bill's assistant, closing on transactions, dealing with banks, doing market due diligence, pitching universities. He created an opportunity for me to participate in all aspects of the business.

When we were creating our first fund, Bill told me if we got the deal closed, I would become vice president of acquisitions. Over time, circumstances have warranted that I be part of virtually every aspect of our business, which has been exceptionally useful as our chief financial officer.

Portfolio: The REIT industry has experienced considerable change in recent years, especially as a number of REITs have returned to the private sector. What's your view?

Nickel: It used to be an assumption that one of the beauties of being a public company is that you had access to much cheaper capital. However, there is so much money coming into real estate that it has changed the dynamics. Despite the tax efficiencies of being a REIT, sophisticated investors don't seem to be differentiating on a return basis between public and private companies. In addition, there are some investors that think it is better to be private and not weighted down with the additional costs of running a public company.

Portfolio: What is American Campus Communities' view on being a public company?

Nickel: We enjoy being a public company. Plus, our clients, the colleges and universities across the country believe there is tremendous value for them in ACC being a public company. From ACC's perspective, being a public company has afforded us an opportunity to have access to better employees, better ways to compensate employees and, even though we are public, we still have access to private monies through public offerings and joint ventures. And, so far, we have not had trouble with the rigors of Sarbanes-Oxley compliance. We have a great team that has created very efficient systems.

Dana Hamilton, 37 managing director of Archstone B.V. Archstone-Smith Englewood, Colo. • NYSE: ASN Education B.A. from Stanford University; MBA from University of California, Berkeley

Dana Hamilton's career in some regards mirrors that of Lisa Palmer. Hamilton, a New Jersey gal, went west to university and then like Palmer was hired by Security Capital Group, a pioneering REIT that owned positions in a number other real estate companies such as Regency. After Archstone was formed, it was spun off as a separate company and Hamilton was lucky enough to go along for the ride. Over the years, when Archstone initiated special project such as devising a branding concept, they turned to Hamilton. "Dana is heading up Archstone's European efforts and has already put together a portfolio of German assets. None of the other multifamily REITs have done this and Archstone charged her with this responsibility," says Eden Levinson, assistant vice president at Duff & Phelps.

Portfolio: Why did you choose a career in real estate?

Hamilton: When I went to business school in 1992, real estate was not the place people wanted to be. Berkeley had an outstanding real estate program, with a wonderful faculty and great contacts, yet few students were interested. A small number of classmates and I had it all to ourselves. I thought real estate was interesting because it was a tangible asset, you can see the product and understand how money is made.

Portfolio: How did you end up at Archstone?

Hamilton: My first real estate job was with Security Capital Group. It was the largest investor in what was to become Archstone. A lot of my colleagues wanted to go into investments or finance, but I wanted to be in operations. Eventually, the management team of Archstone separated from Security Capital and moved to Denver.

Portfolio: Aren't you now based in Amsterdam? How did that come about?

Hamilton: With Archstone, I began doing a number of special projects in the operations area, one of which was developing the brand. By 1999, I was promoted to senior vice president and then shortly thereafter to executive vice president. About two years ago, Archstone thought it would be interesting to see if it should expand in Europe, and I took on that project. So, I moved to Amsterdam to start European operations.

Portfolio: Any success?

Hamilton: We have made three investments in Germany, the most recent was in July 2006 with a $600 million transaction. We are solely in Germany for the moment; it is a large economy with a lot of interesting market dynamics. It's keeping me quite busy.

Portfolio: Should U.S. REITs be going global?

Hamilton: Companies like ProLogis (NYSE: PLD) have a customer base that operates internationally, which is why they have been strong in global markets. Our customer base is not global, so that was not a driver for us. We had a strategy 10 years ago to be in certain U.S. markets. Two or three years ago, we reached that goal, and became open to pursue opportunities outside the United States.

Portfolio: REITs have become a global phenomenon. What's your view?

Hamilton: The REIT vehicle is the best way for people to own real estate. In Europe right now, the two largest economies, Germany and the United Kingdom, are pushing forward with REIT legislation, because there is a demand for professionally managed real estate that is highly liquid and in a transparent vehicle. The future of REITs is very positive both in the United States and throughout the world.