Over the past several quarters, the financial markets have thrown a few curve balls at the REIT and broader real estate investment industry. Consequently, we approach 2009 in the midst of a fair amount of turbulence. Fannie Mae and Freddie Mac have become wards of the Federal government, investment banks have disappeared and government intervention in the financial markets has exceeded anyone’s preconceived notions. At a time like this, active participation in policy and practice-oriented representative bodies like NAREIT becomes more important than ever.

NAREIT’s primary mission is to tell the REIT and real estate investment proposition to one and all. Right now, NAREIT is working hard to ensure that both investors and policy-makers understand the role and many contributions of REITs in the investment marketplace, beginning with the impressive return on investment generated by our REIT community over the years and ending with how REIT investment is distinctive from a variety of other approaches to real estate investment.

Starting in January 2009, NAREIT will be working with a new administration and Congress on a number of pressing issues. First and foremost, the new year will surely bring forth tax and other important fiscal initiatives affecting REITs and real estate investment. NAREIT will be there every step of the way to help shape and guide such policies in an intelligent manner.

Additionally, NAREIT will address several environmental issues likely to be addressed by the next Congress. It is a given that sustainable development issues will become more prominent with the new administration and Congress, possibly leading to legislation that will affect REITs and real estate investment. Moreover, with rising energy prices anticipated over the long term, Congressional commitment to policies and practices promoting energy-efficient buildings are likely only a few steps away.

Also high on the agenda for 2009 is convergence of financial standards, bringing together GAAP and international accounting standards. In this vein, NAREIT will be talking actively to the international board in London, its counterpart in Connecticut and the SEC in Washington, DC.

Of course, NAREIT will continue in 2009 to reach out to all types of investors around the world, with special focus on visiting with major pension funds to discuss how REIT-based real estate investment complements direct investment in real estate.

As for global outreach, we will continue to build on the partnerships we have developed around the world, working especially with our REESA partners—the Asian Public Real Estate Association (APREA), Japan’s Association for Real Estate Securitization (ARES), the British Property Federation (BPF), the European Public Real Estate Association (EPRA), the Property Council of Australia (PCA) and the Real Property Association of Canada (REALpac).

Of particular note, we will be extending and deepening the FTSE EPRA/NAREIT Global Real Estate Index brand a number of ways over the coming year.
I look forward to working through NAREIT with the REIT and publicly traded real estate community in the U.S. and around the world in 2009 to properly raise the profile and prominence of the REIT approach to real estate investment.

Jeff Schwartz
NAREIT Chair