Closed-End Funds

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NASDAQ Symbol 1 Year 12/31/05 to 12/31/06 Cumulative Total Return 2 Year 12/31/04 to 12/31/06 Cumulative Total Return   NAV Market Price NAV Market Price Fund Manager(s) • Contact FPO Date ING Clarion Global Real Estate Income XIGRX 53.99% 22.77% 8.29% 18.63% Team Managed • 480-477-3000 2/25/2004 Cohen & Steers Worldwide Realty XRWFX 47.45 24.69 N/A N/A Cohen/Harvey/Steers • 212-832-3232 3/31/2005 Cohen & Steers Premium Income XRPFX 42.48 27.00 7.91 5.37 Cohen/Harvey/Steers • 212-832-3232 8/27/2002 Neuberger Berman Real Estate Income XNRLX 40.75 30.93 8.26 11.66 Steven R. Brown • 212-476-8800 11/25/2002 Cohen & Steers Advantage Income XRLFX 39.44 25.90 8.83 5.23 Cohen/Harvey/Steers • 212-832-3232 5/24/2001 Cohen & Steers Quality Income Realty XRQIX 39.36 25.61 7.41 7.06 Cohen/Harvey/Steers • 212-832-3232 2/25/2002 Neuberger Berman Real Estate Secs XNROX 39.21 20.88 6.26 2.61 Steven R. Brown • 212-476-8800 10/28/2003 Neuberger Div Advtg XNDDX 38.46 26.59 N/A N/A Team Managed • 212-476-8800 3/25/2004 Neuberger Berman Realty Income XNRIX 37.38 27.49 8.77 4.75 Steven R. Brown • 212-476-8800 4/24/2003 Scudder RREEF Real Estate Fund II XSROX 36.91 22.42 6.99 4.56 Team Managed • 800-349-4281 8/26/2003 RMR Real Estate Fund XRMRX 35.20 19.75 2.11 -1.96 O’Brien/Portnoy • 617-332-9530 12/19/2003 Scudder RREEF Real Estate Fund XSRQX 34.80 29.12 10.27 10.37 Team Managed • 800-349-4281 10/28/2002 Real Estate Income Fund XRITX 32.10 24.53 6.17 10.82 Matthew Troxell • 617-449-2801 7/31/2002 ING Clarion Real Estate Income XIIAX 31.33 19.88 11.26 5.88 Team Managed • 480-477-3000 9/25/2003 AEW Real Estate Income Fund XRIFX 31.10 24.64 6.33 7.05 Matthew Troxell • 617-449-2801 11/25/2002 Cohen & Steers REIT & Utility Income XRTUX 30.89 25.22 6.44 2.71 Cohen/Harvey/Steers • 212-832-3232 1/28/2004 Nuveen Real Estate Income Fund XJRSX 29.55 26.74 7.53 4.77 Team Managed • 800-257-8787 11/15/2001 Cohen & Steers REIT&Pref XRNPX 28.90 32.02 N/A N/A Team Managed • 212-832-3232 6/25/2003 AIM Select Real Estate Income Fund XRREX 27.27 17.35 1.95 2.83 Team Managed • 713-626-1919 5/31/2002 Cohen & Steers Total Return Realty XRFIX 27.14 19.74 6.17 7.25 Cohen/Harvey/Steers • 212-832-3232 9/17/1993 Cohen & Steers Dvd Mjrs XDVMX 26.66 23.12 N/A N/A Team Managed • 212-832-3232 1/28/2005 RMR Hospitality & Real Estate Fund XRHRX 25.84 25.87 2.53 -0.73 O’Brien/Portnoy • 617-332-9530 4/28/2004 Dividend Capital Realty Income XDCAX 25.40 15.99 N/A N/A Team Managed • 800-527-9525 2/23/2005 Nuveen Dvs Div & Income XJDDX 23.32 19.30 N/A N/A Team Managed • 800-257-8787 9/30/2003 RMR FIRE Fund XRFRX 21.54 24.87 N/A N/A Team Managed • 617-332-9530 11/22/2004 RMR Asia Pacific RE XRAPX N/A N/A N/A N/A Team Managed • 617-332-9530 5/26/2006

Source: Lipper, A Reuters Company

Closed-End Funds Picked Up the Pace in 2006

In tandem with the stellar 2006 returns of open-end real estate funds, closed-end real estate funds had an excellent year as well, mirroring the strength of 2004 and recovering nicely from the sluggishness of 2005.

According to Lipper, the average total return for the 25 closed-end real estate funds it tracked in 2006 was 33.86 percent. That average is up considerably compared with 6.9 percent in 2005, which was a considerable drop from 2004’s 28.8 percent average. Even the lower-ranked funds on Lipper’s list contained strong returns—not one had a return lower than 21 percent.

“Toward the end of the summer, there was a broad-based rally, and that really pushed closed-end funds upward,” says Tom Roseen, senior research analyst at Lipper. “Funds with an international focus did particularly well, because real estate fundamentals were strong in a number of countries.”
The top performing closed-end fund, ING Clarion Global Real Estate Income Fund (XIGRX), demonstrated the power of overseas investing, with a 53.99 percent total return in 2006. Like its counterparts in open-end real estate funds, it was invested in familiar and steady performers in overseas real estate such as Land Securities Group in the U.K., Unibail Holding in France and Westfield Group (ASX: WDC) in Australia, as well as U.S. REITs such as Camden Property Trust Inc. (NYSE: CPT) and Nationwide Health Properties Inc. (NYSE: NHP).

Neuberger Berman, Inc., had four funds ranked among the top 10 closed-end funds, topping out with Neuberger Real Estate Fund Inc. (XNRLX), which posted a 40.75 percent total return. The Neuberger funds invest in a variety of notable U.S. REITs, including American Financial Realty Trust (NYSE: AFR), Glimcher Realty Trust (NYSE: GRT), Ventas, Inc. (NYSE: VTR) and Vornado Realty Trust (NYSE: VNO), among others.

According to Steven Brown, managing director at Neuberger Berman, both macroeconomic and REIT-specific factors drove REIT earnings gains. “Especially in the latter part of the year, office properties benefited from M&A activity, while more retail-oriented sectors—such as shopping centers and regional malls—were helped by a combination of lower energy prices, stable short-term interest rates and improving employment trends.”

Brown also noted that health care properties, gained momentum through their relatively low valuations and thinks that they will benefit most from any future interest rate decline.