Historical compound annual total returns of the NAREIT Equity Index versus leading U.S. benchmarks
	NAREIT Equity	S&P 500	Dow Jones Industrial Average¹
1-Year	37.1%	28.7%	25.3%
3-Year	17.5%	-5.3%	-1.0%
5-Year	14.4%	-0.6%	2.6%
10-Year	12.1%	11.1%	10.8%
30-Year	14.2%	12.2%	8.7%
¹Price only returns. Data for periods ending Dec. 31, 2003

The NAREIT Equity REIT Index outperformed the S&P 500 and Dow Jones Industrial Average for the fourth consecutive year. The one-year compound annual total return for the NAREIT Equity Index was 37.1 percent, which was the strongest performance for the index since 1976 when the compound annual total return was 47.6 percent.

Additionally, the results for REITs were just as strong over historical periods. The NAREIT Equity Index outperformed these benchmarks over the three-year, five-year and 10-year periods. As shown in the table below, the NAREIT Equity Index posted a 17.5 percent compound annual total return for the three-year period ending Dec. 31, 2003, while the S&P 500 posted a 5.3 percent decline, and the Dow Jones dropped 1.0 percent. The NAREIT Equity Index posted a compound annual total return of 14.4 percent during its five-year period, while both the S&P and Dow Jones lagged behind at -0.6 percent and 2.6 percent, respectively. During its 10-year run, the NAREIT Equity Index returned 12.1 percent with the S&P and Dow Jones trailing close behind at 11.1 percent and 10.8 percent, respectively.

Historical Performance of REITs and U.S. Benchmarks (Compound annual total returns, in percent, period ending Dec. 31, 2003)

Note: Dow Jones Industrial Average data do not include the re-investment of dividends.