Portfolio typically focuses on the domestic activities of U.S. REITs, and for good reason. The strong performance by REITs has been well documented and real estate stocks continue to gain favor with investors, fund managers and retirement plan sponsors and providers here in the United States. However, those benefits have also expanded the international reach of REITs, both in terms of U.S. companies operating internationally and foreign capital being invested in U.S. real estate.

“Capital Import” examines some of the barriers to foreign investors owning U.S. REITs and highlights which countries are becoming key players in providing capital to the industry.

“Foreign Affairs” looks at the common traits REITs operating internationally share and details why expanding abroad is not a viable option for others.

In addition, referenced in this issue and available exclusively online is a detailed chart created by Ernst & Young outlining the international tax treatments of REITs across the world. The chart is available at www.realestateportfolio.com.

Other Features

Because there were only three public REIT offerings between March 1999 and June 2003, Wall Street took notice when American Financial Realty Trust and Maguire Properties went public on the same day in late June. But were these offerings the start of another run of REIT IPOs or simply two isolated company-specific business decisions? “REIT IPOs: Trend or Coincidence” talks with analysts and bankers to answer that question.

In addition, this issue features the debut of a new column, Window on Washington, an interview with an influential policymaker. First up is Rep. Jim McCrery (R-LA), a senior member of the House Ways and Means Committee and a key figure at the forefront of bringing the REIT Improvement Act (RIA) to passage.

Also, Princeton University professor and investment guru Burton Malkiel takes a random walk with Portfolio in this issue’s Capital Markets column. Malkiel’s classic text “A Random Walk Down Wall Street” is now in its eighth edition and includes several favorable references to real estate stocks.

Matthew Bechard
Editor in Chief