By R. Scot Sellers

I trust all of you enjoyed a wonderful summer, and had great vacation experiences with your family and friends. From a business perspective, summer is often a bit slower than the rest of the year and therefore provides some excellent time for reflection and planning. As I reflected on the past 10 years in our industry, I found it remarkable just how far we have come in such a short time. Ten years ago, we did not hear real estate companies talking about research and development expenditures, building consumer brands, technological innovation or sophisticated operating platforms. Today, these discussions, and substantive progress in all of these areas, are the norm for the leading companies in our industry.

If you stop to consider the leading companies in our country today, one characteristic that almost all of them share is a significant expertise and investment in international operations. Despite the prevalence of international investment and operations in other industries, our industry is still growing in that area. Today, efficient national platforms are taken for granted, but forward-looking companies had to have the courage to blaze this trail to show everyone else it was feasible.

I believe that today we are at a very early stage in the process of international expansion from companies in the REIT industry. The international landscape is changing rapidly. The United Kingdom has agreed to adopt REIT legislation on Jan. 1, 2007, and Germany is actively evaluating the same decision. Also, the expansion of the number of countries that will adopt this legislation is expected to continue. Most of all, the international landscape is very investor-friendly and injects liquidity into a heretofore illiquid marketplace.

This issue of Portfolio magazine does a great job of bringing you up to date on the progress of REIT legislation around the world, and the changing real estate investment picture in other countries. Enjoy reading it and reflecting on the future of our industry, as well as the next steps for your company and business plan.

On a different note, I would like to thank you for the opportunity to serve as NAREIT’s chair for the past 12 months. It has been a wonderful and energizing experience, particularly enjoyable because of the chance to work closely with NAREIT’s wonderful team, led very capably by Steve Wechsler. Steve does an incredible job of representing all of us, and brought a number of great new leaders to NAREIT’s executive ranks during the past year, and I encourage you to get to know them at November’s Annual Convention in San Francisco. These individuals add a new dimension and outlook to the NAREIT team, and will allow us to accomplish even more in the years to come.

Finally, I would like to thank our board of governors and executive committee for their leadership, support and dedication during the past year. Your commitment to your volunteer leadership roles in the midst of so many other demands on your time is a testament to our industry’s strength.

Ultimately, the most valuable part of my many years of NAREIT involvement has been the relationships I have developed. Thanks again for the privilege of serving, and I look forward to building upon these important relationships for years to come.

R. Scot Sellers
NAREIT CHAIR
CHAIRMAN & CEO, ARCHSTONE-SMITH