MEDIA RELEASE

INSTITUTIONS SAY REITS WILL CONTINUE TO BE ATTRACTIVE INVESTMENTS
BUT CAUTION THAT LACK OF TRANSPARENCY IS A RISK

NEW YORK, July 5th, 2005: Institutional investors will either increase or maintain their investments in publicly traded REITs over the next 18 months, according to an overwhelming majority (90%) of buy side analysts and portfolio managers participating in a survey conducted in June by Broadgate Consultants. However, in addition to “location, location and location,” REIT CEOs should add a fourth priority to their list—that of responding more effectively to the information needs of investors. Survey respondents included some of the largest pension and mutual funds in the U.S.

Despite their enthusiasm for the sector, a central area of concern for institutional investors is the quality of companies’ disclosure. Almost one-third (31%) of the survey respondents indicated that the level of information they receive on underlying assets in REIT portfolios is insufficient to develop an accurate valuation.

Nearly half of the survey respondents said that REITs are not forthcoming with sufficient information to value certain income streams, such as those from joint ventures or partnerships, compared to other business segments.

In general, the survey respondents believe that there is a communication disconnect between investors and REIT management. Only half of the analysts and portfolio managers surveyed thought that REIT CEOs and their boards really understand their investor base and what drives their share valuation.

These concerns about transparency come at a time when investors, while generally positive on the REIT sector, do not view it as cheap. Only 10% of the survey’s respondents think that REIT shares are undervalued.

Finally, nearly 60% of the survey respondents viewed the direct participation in real estate of alternative investors such as private equity firms and hedge funds as an opportunity – possibly for co-investment.

“The good news is that there appears to be plenty of demand for REIT company shares among sophisticated institutional buyers,” said Thomas C. Franco, CEO of Broadgate Consultants. “However, institutional investors will be looking much more carefully at individual REITs, their management teams, strategy, strengths and weaknesses. Those management teams that understand their investors and what is important to them are likely to win the most support, assuming the performance factors are equal.”

Mr. Franco also noted that, “The expected growth of hedge fund and private equity investment in the sector would seem to indicate that there continues to be market inefficiencies to exploit, which explains, in part, the strong institutional appetite for REIT shares.”

About Broadgate Consultants, LLC
Established in 1987, Broadgate Consultants, Inc. provides strategic corporate and capital markets communications advisory and implementation services to public companies and private equity firms and their portfolio companies. Its clients include global public companies, including many with ADRs listed in the U.S., as well as private equity firms with assets under management ranging from $100 million to more than $5 billion. The firm is also recognized for its crisis management services. Broadgate is an operating unit of D.F. King & Co. Inc. The firm is also a Partner in Public Relations Organisation International (PROI), the world's oldest international partnership of independent public relations and marketing firms. More information about Broadgate can be found on the Internet at www.broadgate.com