1. Real Estate Investment Trusts Investing for Dividends and Diversification

2. All Information Included in this Presentation is Based on Publicly-Traded Securities Only National Association of Real Estate Investment Trusts ®

3. What is a REIT? Why Invest in REITs? Common Questions about REIT Investing The Globalization of Real Estate Securities How to Invest in REITs Summary

4. REITs are publicly traded companies that own and manage investment-grade commercial real estate Like Verizon in the telecommunications business or Merck in the pharmaceutical business, REITs are companies in the real estate business REITs are not mutual funds, closed-end funds or partnerships REITs provide a simple and inexpensive way to invest in commercial real estate without buying property directly What is a REIT?

5. Company must be in the real estate business –At least 75 percent of assets must be real property –At least 75 percent of revenue must come from real estate Stock must be widely held At least 90 percent of taxable income must be distributed annually to shareholders Company receives a dividends paid deduction Taxes are paid at the shareholder level Requirements of the REIT Election

6. Full-time professional management teams Business plans designed to maximize shareholder value SEC financial reporting and transparency Stock values backed by real assets Tax transparency Traditional corporate governance and accountability What is a REIT?

7. Approximately $500 billion of commercial real estate properties owned –10-15 percent of investment-grade commercial real estate –More than 29,000 properties nationwide –All major property sectors –All major geographic regions { $ } 298 billion equity market capitalization { } 142 publicly traded REITs in the FTSE NAREIT All REIT Index 127 companies trade on the NYSE The REIT Industry in 2010

8. Trend (18.5% Compound Annual Rate) KIMCO Realty IPO November 1991 Taubman Centers IPO December 1992 (First UpREIT) Billions of dollars Data as of March 31, 2010. Source: NAREIT ® Note: Equity Market Capitalization does not include operating partnership units Equity Market Capitalization of Listed U.S. REITs

9. 7.5%MORTGAGE REITs Provide debt capital for housing and commercial real estate by investing in mortgages and mortgage- backed securities. Derive revenues primarily from interest payments. 92.1%EQUITY REITs Provide equity capital for commercial real estate by owning real estate assets. Derive revenues primarily from rents. 0.4%HYBRID REITs Combine the investment strategies of both equity and mortgage REITs Data as of March 31, 2010. Source: NAREIT ® Types of REITs Today

10. Property Sector Percent Residential14 Office13 Health Care13 Regional Malls12 Shopping Centers10 Diversified7 Self Storage7 Lodging/Resorts7 Specialty7 Industrial5 Mixed3 Free Standing2 Total100 Data as of March 31, 2010. Source: NAREIT ® U.S. REITs Invest in All Property Types

11. Data provided by Institutional Shareholder Services (ISS) show that real estate had one of the best average corporate governance rankings of any U.S. Industry as of April 1, 2009, as measured by ISS’ Corporate Governance Quotient (CGQ) database Industry GroupAverage Index CGQ Utilities69.9 Pharmaceuticals & Biotechnology56.2 Semiconductors & Semiconductor55.4 Real Estate54.5 Automobiles & Components52.4 Average57.7 Transparency The REIT Industry in 2010

12. What is a REIT? Why Invest in REITs? Common Questions about REIT Investing The Globalization of Real Estate Securities How to Invest in REITs Summary

13. 1.Long-term performance 2.Reliable and significant current income which grows over time 3.Capital preservation and protection from inflation 4.Diversification Why Invest in REITs?

14. Performance REITs Outperform Leading U.S. Benchmarks Compound annual total returns in percent: March 1980 – March 2010 Dow Jones Industrials 1 NASDAQ Composite 1 S&P 500 1 Price only returns FTSE NAREIT Equity REITs

15. Proposed Acquisition of Equity Office Properties Trust, 11/20/06 Acquisition of Equity Office Properties Trust Completed, 2/9/07 Millions of Dollars Data as of March 31, 2010. Source: NAREIT ® Liquidity Average Daily Trading Volume of Listed U.S. REITs

16. Average annual income return 7.3 Percent Average annual total return: 12.1 percent Average annual income return: 7.3 percentage points or 60 percent of total return Dividends U.S. REITs Deliver Reliable Current Income Data for 20-year period ranging 1990-2009. Source: NAREIT ®

17. Indexed at December 1980 = 100 Consumer Price Index NAREIT Equity Price Index Data as of February 28, 2010. Source: NAREIT ®, Bureau of Labor Statistics. Capital Preservation REITs Provide Inflation Protection

18. 1.Rates of return 2.Volatility of returns 3.Correlation of returns When the return to an investment is high enough, the volatility is low enough and/or the returns are sufficiently uncorrelated, the investment earns a place in the portfolio. Diversification Three Factors Determine Portfolio Allocations

19. Source: Small Stocks—represented by the fifth capitalization quintile of stocks on the NYSE for 1926–1981 and the performance of the Dimensional Fund Advisors, Inc. (DFA) U.S. Micro Cap Portfolio thereafter; Large Stocks—Standard & Poor’s 500 ®, which is an unmanaged group of securities and considered to be representative of the stock market in general; Government Bonds—20-year U.S. Government Bond; REITs—National Association of Real Estate Investment Trusts ® (NAREIT) Equity REIT Index. REITsLarge StocksSmall StocksBonds 1972–200713.011.214.3 8.7 1988–200712.311.813.5 9.3 1998–200710.55.910.67.3 2003–200718.212.817.25.7 Compound annual rate in percent Diversification Rates of Return

20. Source: REITs—NAREIT Equity Index; Large Stocks—Standard & Poor’s 500 ® ; Small Stocks—Ibbotson U.S. Small Stock Series; Bonds—20-year U.S. Government Bond. 1972–200717.417. 0 22.511.5 1988–200717.416.619.910.1 1998–200720.417.322.28.8 2003–200722.39.825.14.1 REITsLarge StocksSmall StocksBonds Annualized standard deviation of quarterly returns in percent Diversification Volatility of Returns

21. Source: Large Stocks—Standard & Poor’s 500 ®, which is an unmanaged group of securities and considered to be representative of the stock market in general; Small Stocks—represented by the fifth capitalization quintile of stocks on the NYSE for 1926–1981 and the performance of the Dimensional Fund Advisors, Inc. (DFA) U.S. Micro Cap Portfolio thereafter; Government Bonds—20-year U.S. Government Bond; REITs—FTSE NAREIT Equity REIT Index. Correlation 0.08 0.55 –0.4 –0.2 0.0 0.2 0.4 0.6 0.8 1.0 Begin 1972 End 1976 1976 1980 1984 1988 1992 1996 2000 2004 2003 2007 vs. Small stocks vs. Large stocks vs. Bonds 1984 1988 1996 2000 60-month rolling periods Diversification REIT Returns are Uncorrelated with Other Assets

22. Source: Small Stocks—represented by the fifth capitalization quintile of stocks on the NYSE for 1926–1981 and the performance of the Dimensional Fund Advisors, Inc. (DFA) U.S. Micro Cap Portfolio thereafter; Large Stocks—Standard & Poor’s 500 ®, which is an unmanaged group of securities and considered to be representative of the stock market in general; Government Bonds—20-year U.S. Government Bond; International Stocks—Morgan Stanley Capital International Europe, Australasia, and Far East (EAFE ® ) Index; Treasury Bills—30-day U.S. Treasury Bill; REITs—FTSE NAREIT Equity REIT Index. Average Annual Return % Risk (Annual Standard Deviation) % Treasury bills 4 20 255101520 16 12 8 Portfolios with REITs Portfolios without REITs 0 Small stocks International stocks Large stocks Bonds REITs Stocks, bonds, bills, and REITs 1972-2007 Diversification Efficient Frontier with and without REITs

23. Return 10.6% Risk 10.7% Sharpe Ratio 0.42 Stocks and Bonds Return10.9% Risk10.5% Sharpe Ratio 0.47 With 10% REITs Return11.3% Risk10.4% Sharpe Ratio 0.50 With 20% REITs Source: Stocks—Standard & Poor’s 500 ®, which is an unmanaged group of securities and considered to be representative of the stock market in general; Bonds—20-year U.S. Government Bond; Treasury Bills—30-day U.S. Treasury Bill; REITs—FTSE NAREIT Equity REIT Index. Stock and bond investors 1972–2007 T-Bills 10% Bonds 40% Stocks 50% T-Bills 10% Bonds 35% Stocks 45% REITs 10% T-Bills 10% Bonds 30% Stocks 40% REITs 20% Diversification Diversify to Reduce Risk and Increase Return

24. A: Variation in returns across funds attributed to asset allocation C: A fund’s total return attributed to asset allocation 100% 90% 40% 050100 C B A Percent (%) B:Variation in a fund’s returns over time attributed to asset allocation Diversification How Important is Asset Allocation?

25. What is a REIT? Why Invest in REITs? Common Questions about REIT Investing The Globalization of Real Estate Securities How to Invest in REITs Summary

26. Interest rates Home ownership Common Questions About REIT Investing

27. Rising interest rates to not always result in declining REIT performance: Higher interest rates result from economic growth, higher inflation or both When economy is growing, the value of real estate will also rise Leases include bumps related to inflation – companies pass on costs of inflation to tenants Most companies carry mostly fix rate debt. REITs have taken advantage of 40-year low rates to improve their balance sheets Interest Rates and REIT Performance

28. Historical data show rising rates have little or no effect on REIT prices: Over the past 30 years, data shows that when interest rates rose, the probability of REIT stocks rising versus falling was about 1 to 1 REITs only slightly more sensitive to interest rates than the S&P 500 REITs less sensitive than other financial stocks Source: Banc of America Securities Interest Rates and REIT Performance

29. A house is a consumer good that may or may not be a good investment A house is highly leveraged, like buying stock on margin A house is undiversified, like owning a single stock Current return (or dividend) is not cash, but imputed “rental value” that cannot be reinvested and compounded “User costs” recognize both cash and non-cash costs of homeownership –Mortgage interest expense –Operating expenses –Depreciation and opportunity cost of homeowner’s equity –Property taxes –Mortgage insurance –Homeowners insurance Transactions costs are large and liquidity and pricing are uncertain Returns to housing are relatively uncorrelated with returns to commercial real estate Home Ownership is No Substitute

30. What is a REIT? Why Invest in REITs? Common Questions about REIT Investing The Globalization of Real Estate Securities How to Invest in REITs Summary

31. Investment opportunity universe doubles Increased adoption of REIT type structure Compelling dividend yield Diversification benefits - low correlation to other asset classes and among the regions in which the fund invests Valuations attractive with wide variances to private market real estate Source: INGClarion Why Invest in Global Real Estate Securities?

32. Americas 138 Companies $305 Billion (42%) Asia Pacific 122 Companies $298 Billion (41%) EMEA 93 Companies $123 Billion (17%) FTSE EPRA/NAREIT Global Index 353 Companies $726 Billion Data as of March 31, 2010. Source: NAREIT®, FTSE®. The FTSE EPRA/NAREIT Global Real Estate Index Series

33. Base date of 12/31/99 of 1,000 index points Designed to reflect performance of companies in North American, European and Asian real estate markets Free float market capitalization weights All annual reports must be in English Specific guidelines for each geographic series Free float market cap and liquidity standards Structured to represent general trends in all eligible real estate stocks worldwide Quarterly reviews and rebalancing by separate index committees FTSE EPRA/NAREIT Global Rules

34. Many countries have adopted a REIT-type structure: Belgium REITs – growing universe German REITs – (G REITs) – Effective 1/1/2007 Canadian REITs – legislated 1993, growing universe Dutch FBI - Fiscal Beleggings Instelling (Netherlands) Hong Kong REITs – legislated 2005 J-REIT - Japanese Real Estate Investment Trust LPT - Listed Property Trusts (Australia and New Zealand) SIIC – Sociétés d'investissements Immobiliers Cotées (France) SIIQ – Società di investimento immobiliare quotate (Italy) S-REIT – Singapore Real Estate Investment Trust United Kingdom – Effective 1/1/2007, 9 companies already elected Globalization of Real Estate Securities

35. Australia Belgium Bulgaria Canada France Germany Hong Kong Israel Italy Japan Korea Malaysia Mexico Netherlands New Zealand Singapore South Korea Taiwan Thailand Turkey United Kingdom REIT Legislation in Place: REIT Legislation Under Discussion: Finland India Pakistan Spain Countries with REIT Legislation

36. What is a REIT? Why Invest in REITs? Common Questions about REIT Investing The Globalization of Real Estate Securities How to Invest in REITs Summary

37. REIT stocks can be bought and sold in a number of ways: Most stocks trade on major stock exchanges Dividend reinvestment programs (DRIPs) REIT and real estate security open-end mutual funds Closed-end funds (CEFs) Exchange traded funds (ETFs) How to Invest in REITs

38. InvestInREITs.com –Source for information on REIT investing –Direct links to NAREIT member web sites –Performance information and stock tickers –List of REIT mutual funds –List of REITs with DRIPs Wall Street analyst coverage Independent research coverage Corporate investor relations Information on REIT Investing

39. NAREIT® does not intend this presentation to be a solicitation related to any particular company, nor does it intend to provide investment, legal or tax advice. Investors should consult with their own investment, legal or tax advisers regarding the appropriateness of investing in any of the securities or investment strategies discussed in this presentation. Nothing herein should be construed to be an endorsement by NAREIT of any specific company or products or as an offer to sell or a solicitation to buy any security or other financial instrument or to participate in any trading strategy. NAREIT expressly disclaims any liability for the accuracy, timeliness or completeness of data in this presentation. Unless otherwise indicated, all data are derived from, and apply only to, publicly traded securities. Any investment returns or performance data (past, hypothetical, or otherwise) are not necessarily indicative of future returns or performance. Disclaimer