By Allen Kenney

Preparing for a New Year

Approximately 1,500 REIT executives and investors seeking the best in industry insight hit the jackpot at the 2007 NAREIT Annual Convention in Las Vegas.

From November 14 through 16, real estate experts from around the globe gathered at the Bellagio Hotel. Attendees didn't just spend their days at the blackjack table and nights at Celine Dion concerts, though. Instead, they met to analyze the year's most significant developments, shed light on the year to come and honor industry leaders and visionaries.

To open the conference, attendees were treated to a Vegas-themed video featuring commentary on REITs from top securities analysts and portfolio managers who highlighted the features that make REITs "a winning hand:" liquidity, dividends, diversification, transparency and performance. Later, in his first public address as NAREIT chair, Regency Centers Corporation (NYSE: REG) Chairman and CEO Martin "Hap" Stein discussed the state of the industry in the midst of "a credit market crisis the likes of which we haven't seen for a long time."

Stein presents Barden Gale, managing director and chief investment officer for real estate at ABP Investments, U.S., Inc., with the 2007 Industry Achievement Award.

"The value of the REIT investment proposition has become even clearer and even more compelling," Stein said during his remarks.

The conference featured sessions on an array of the most pressing issues facing the REIT industry, such as globalization and the state of the debt market. Among a panel of leading REIT CEOs, the consensus was that the consolidation activity seen in early 2007 was likely to regain momentum in 2008, with private equity groups continuing to target publicly traded REITs for acquisition.

"I think there will be some real strategic consolidations, rather than opportunistic," Laurence Geller, CEO of Strategic Hotels & Resorts Inc. (NYSE: BEE), said during the discussion.

Leaders Honored

At the convention's opening luncheon, NAREIT recognized Simon Property Group (NYSE: SPG) CEO David Simon and Barden Gale, managing director and chief investment officer for real estate at ABP Investments, U.S., for their distinguished accomplishments and industry leadership.

Simon was named the 2007 Industry Leadership Award winner, which goes to a REIT executive who has made a significant and lasting contribution to the growth and betterment of the industry. Simon has headed the largest U.S. shopping mall REIT for nearly 15 years and also served as NAREIT chair in 2005. Stein praised Simon as a "tireless campaigner on behalf of our industry in the political arena."

[from left to right] Stein moderated a panel discussion during the opening lunch featuring REIT CEO’s takes on the industry outlook for 2008. Camden Property Trust Chairman and CEO Richard Campo and HCP Inc. Chairman and CEO James Flaherty, III, were among the participants.

[from left to right] Goodwin Procter LLP Partner and Chair—Real Estate Securities Capital Markets Group Gilbert Menna; James Corl, executive vice president for Cohen & Steers Capital Management; Mark Decker, managing director for Robert W. Baird & Co.;Paul McEvoy, senior managing director, DRA Advisors Inc.; and Morgan Stanley Managing Director Matthew Ostrower provided attendees with a general overview of the current state of the REIT industry.

[from left to right] Kimco Realty Corporation Vice President, Investor Relations, Barbara Poole; Carol Merriman, vice president of investor relations and corporate development for Lexington Realty Trust; and Wachovia Securities Managing Director Cathy A. Casey mingle at the “Women in NAREIT” reception. The event provided female REIT professionals with an opportunity to network and socialize.

[from left to right] Arthur Coppola, president and CEO, The Macerich Company; Barden Gale; Green Street Advisors Inc. Managing Director Mike Kirby; and Richard Shafer, chief investment officer for the Alaska Permanent fund Corporation, discuss the wide array of investment opportunities available through the “real estate investment continuum.”

Pietro Doran, chairman and principal partner of Doran Capital Partners, expounds on the REIT market in Asia, explaining the opportunities and pitfalls of investing in Chinese real estate.

[from left to right] NAREIT Executive Vice President, Finance & Operations, Sheldon Groner presents Ed Sayers, assistant vice president of energy services for Simon Property Group, with the “Leader in the Light” Gold Award. Simon and Legacy Hotels REIT shared the top award, which recognizes REITs that have made advances toward improving energy efficiency and sustainability.

Stein presented Gale with the 2007 Industry Achievement Award. NAREIT bestows the Achievement Award on industry professionals whose acumen and integrity have helped heighten awareness of REITs and publicly traded real estate.

Lights On

Simon Property Group and Legacy Hotels REIT (TSE: LGY.UN) shared the Gold Award honors in NAREIT's 2007 "Leader in the Light" awards.

The U.S. Environmental Protection Agency co-sponsors Leader in the Light along with NAREIT. The awards are handed out to REITs that implement superior energy use practices. Judges for the award include experts with backgrounds in finance, environmental administration and academia.

While Simon and Legacy tied for the gold award, NAREIT gave the silver award to Parkway Properties Inc. (NYSE: PKY). The bronze award went to The Macerich Company (NYSE: MAC). AMB Property Corporation (NYSE: AMB), HCP Inc. (NYSE: HCP) and ProLogis (NYSE: PLD) all received honorable mention distinctions.