When conducting research for the energy-focused feature, I turned to Google. More than 13 million entries popped up when I entered the phrase "Green Buildings." Looking through the results, I thought that there would maybe be a few sites where "green" and building" were mentioned together. Not even close. Instead, there were more than 80 pages of information on green buildings associated with energy conservation and sustainable initiatives.

There is no question that green buildings represent a trend that is gaining ground and is increasingly well accepted.

Local governments are taking action and many have adopted legislation to ensure buildings go green, such as Washington, D.C.'s Green Building Act of 2006. This legislation requires that commercial developments larger than 50,000 square feet to meet LEED standards for new and renovated buildings starting Jan. 1, 2012.

REITs have also heard the call. Many companies, such as ProLogis and Simon Property Group, have started green efforts by conserving water, using monitored lights and even requesting recycled carpet. In fact, for the past two years, NAREIT, in collaboration with the U.S. Environmental Protection Agency (EPA), has presented the "Leader in the Light" award to honor member companies for demonstrating superior and sustained energy use practices.

Energy professionals applaud these efforts and say that not only does sustainable energy help the environment, but it is extremely profitable as well.

For more information on how sustainable initiatives boost asset values, turn to "Growing Green."

Also in this Issue

REITs provided spectacular performance yet again in 2006. For the seventh year in a row, the FTSE NAREIT U.S. Real Estate Index outperformed the major market indexes, with gains of 34.4 percent in the FTSE NAREIT All REIT Index and 35.1 percent in the FTSE NAREIT Equity Index. The returns were a big upward swing from 2005 where the returns were 8.3 percent and 12.2 percent, respectively. Read about the largest mutual funds ranked by their 2006 returns and see what fund managers predict for 2007 in "Stellar Performance."

The 2006 Portfolio Stock Challenge gave many twists, turns and surprises throughout the year. However, there was only one winner: Jay Leupp, managing principal for Alesco Global Advisors. To read how he played the game and what he predicts for 2007, turn to "Leader of the Pack."

Erin Corcoran
Managing Editor