REITs Continue To Outperform Broader Market Despite Negative First Half Returns

June profit taking eroded solid gains made by REITs earlier in the spring. REITs finished in negative territory for the first half of 2008 but still bettered the performance of other major market benchmarks.

- For the first half of 2008, the total return of the FTSE NAREIT All REITs Index, which includes U.S. Equity, Mortgage and Hybrid REITs, was down 5.52%, while the FTSE NAREIT Equity REITs Index was down 3.59%. By comparison, the S&P 500 was down 11.91% for the half, the Dow Jones Industrials were down 14.44%, the NASDAQ Composite was down 13.55% and the Russell 2000 was down 9.37%.

- For the second quarter of 2008, the FTSE NAREIT All REITs Index was down 5.13% and the FTSE NAREIT Equity REITs Index was down 4.93%, while the S&P 500 was down 2.73%, the Dow Jones Industrials were down 7.44%, the NASDAQ Composite was up 0.61% and the Russell 2000 was up 0.58%.

Self-storage and Apartments remained the strongest segments of the REIT market throughout the first half of 2008.

- The total return of the Self-storage segment was up 12.15% for the first half of 2008.

- The total return for the Apartment segment was up 4.35% for the first half of the year.

Equity REITs continued to outperform other major market benchmarks for multi-year periods.

- The total return of the FTSE NAREIT Equity REITs Index outpaced the S&P 500, the Dow Jones Industrials, the NASDAQ Composite and the Russell 2000 for the past 3-, 5-, 10-, 15-, 20-, 25-, 30-and 35-year periods as of June 30, 2008.

The National Association of Real Estate Investment Trusts (NAREIT) is the representative voice for U.S. REITs and publicly traded real estate companies worldwide. Members are real estate investment trusts (REITs) and other businesses that own, operate and finance income-producing real estate, as well as those firms and individuals who advise, study and service those businesses. Visit our Web sites at www.nareit.com and www.investinreits.com.

NAREIT does not intend this press release 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 publication. 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 publication. 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.

REITs Continue To Outperform Broader Market Despite Negative First Half Returns

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REITs Continue To Outperform Broader Market Despite Negative First Half Returns

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