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January 30, 2012
Message from the President
 The Federal Reserve's Federal Open Market Committee announced last week that it expects the economy to continue growing at a slow pace and that it will maintain the target range for the federal funds rate between zero and a quarter percent "at least through late 2014." The Fed's statement significantly extends its time frame for holding short-term interest rates near zero.
The extension of low interest rates is likely to further sharpen investors' focus on the search for higher-yielding income investments, including the search for higher-yielding stocks among equity investors. Stock yields generally remain low, as corporations still uncertain about the economic outlook choose to retain their profits.
In the midst of this environment, REITs provide an opportunity for income-oriented investors that stands in sharp contrast to the broader equity market and many fixed income investments, as well.
Last week, the dividend yield of the FTSE NAREIT All Equity REITs Index was 3.5 percent, and the yield of the FTSE NAREIT Mortgage REITs Index was 14 percent. Out of 126 U.S. equity REITs, 71 last week were offering dividend yields of more than 4 percent, with many in the 5-8 percent range.
What's more, REIT yields have been supported largely by growing dividend payouts. SNL Financial's data show that 35 percent of REITs boosted their dividends last year. In the video interview detailed below, SNL's Keven Lindemann notes that REITs should receive more recognition for the reliable income they provide. The strong REIT dividend is not a recent opportunity, but a long-standing one. Over the long term, REIT dividends have accounted for nearly 60 percent of total returns.
As always, dividends are an important part of the REIT investment proposition and a key component of the REIT story we will be taking to investors in the weeks and months ahead.
Steven A. Wechsler
President and CEO
NAREIT Among Associations Calling for Removal of PCCRA
 NAREIT joined a host of real estate industry groups asking federal regulatory agencies to eliminate the Premium Capture Cash Reserve Account (PCCRA) provision that is part of the proposed rule on credit risk retention under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
In a letter sent on Jan. 20 to Federal Reserve Chairman Ben Bernanke and the Securities and Exchange Commission (SEC), among others, NAREIT and the coalition warned that the PCCRA provision could have unintended consequences for the private securitization markets. Namely, the associations cautioned that it would severely curtail the issuance of non-Agency residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS).
"We believe that the federal regulatory agencies can appropriately craft the Proposed Rule to ensure a liquid, credible, safe and sound non-Agency RMBS and CMBS market without the inclusion of the PCCRA," the associations wrote.
(Contact: Kirk Freeman at kfreeman@nareit.com)
REIT.com video: Doug Bibby, National Multi Housing Council
 The multihousing industry is poised for a strong year in 2012, according to Doug Bibby, president of the National Multi Housing Council (NMHC). In a video interview with REIT.com, Bibby discussed growth, maintaining the momentum and keeping up with the demand for multifamily housing.
On the heels of NMHC’s annual meeting in January, Bibby said that there is great optimism in the industry.
"We're seeing a surging demand for rental housing and a preference for apartments, so that is providing great growth opportunities for our members," Bibby said. "At the same time, supply is more limited in the industry."
He attributes the current lack of supply to the previous single-family housing bubble and added that NMHC's member corporations have been much more restrained in their building within the last few years. As a result, he anticipates rental prices to continue to grow this year.
In order to sustain that momentum, Bibby said that it will take jobs and a growth in the economy.
(Contact: Matt Bechard at mbechard@nareit.com)
House Agriculture Committee Approves Derivatives Measures
 On Jan. 25, the House Agriculture Committee approved a number of targeted bills to address ongoing end-user concerns with the implementation of the derivatives measures of the Dodd-Frank Act.
Specifically, one proposal, the bipartisan Business Risk Mitigation and Price Stabilization Act of 2011 (H.R. 2682) would clarify that Congress did not intend for financial regulators to have the authority to impose margin requirements on derivatives entered into by non-financial end-users to hedge business risks. The Committee also approved a technical amendment and passed the bill by a unanimous voice vote.
This proposal, which was also passed unanimously by the House Financial Services Committee in November, has long been a legislative priority of NAREIT and its partners in the Coalition for Derivatives End-Users.
These proposals are expected to be considered by the full House of Representatives later this year. However, the likelihood of Senate action on these bills is less clear.
(Contact: Kirk Freeman at kfreeman@nareit.com)
NAREIT Collecting 1099 Data
NAREIT's annual effort to collect data on 1099 reporting by member companies is officially underway. For the first time, NAREIT is collecting data from public, non-listed REITs as well as listed REITs.
The data repository is an excellent way to make sure that shareholders receive correct 1099 data on REIT dividends on a timely basis for the purpose of preparing their tax returns.
(Contact: John Barwick at jbarwick@nareit.com)
REIT.com Video: Keven Lindemann, SNL Financial
 Dividends have always been a core component of the REIT investment proposition, and with investors clamoring for yield in today's market REITs should be getting more recognition for the reliable income they provide, according to Keven Lindemann, director of SNL Financial's Real Estate Group.
"It is difficult anywhere in the fixed-income world to find a really secured yield of 4 percent or greater," Lindemann said during a REIT.com video interview, in reference to a recent Barron's article that focused on where investors could find yield above 4 percent, but neglected to mention REITs. Out of 126 equity REITs in the FTSE NAREIT All Equity REITs Index, 71 had a dividend of 4 percent or greater.
(Contact: Matt Bechard at mbechard@nareit.com)
NAREIT Welcomes First New Member of 2012
 NAREIT is pleased to welcome its first new corporate member of 2012, Unibail-Rodamco SE (UL: FP). Unibail-Rodamco is a publicly traded, internally managed equity REIT and Europe's largest listed REIT.
Unibail specializes in shopping centers in European capital cities, and in offices and convention and exhibition centers in Paris. Based in Paris and Amsterdam, Unibail is listed on the Euronext Paris and Amsterdam exchanges. Robert van Oordt is chairman of the company's supervisory board and Guillaume Poitrinal is chairman of its management board and CEO.
(Contact: Bonnie Gottlieb at bgottlieb@nareit.com)
Register Today to Get REITWise
 REITWise 2012®: NAREIT's Law, Accounting & Finance Conference® brings together REIT executives and leading service providers that support their legal, financial and accounting needs. Registration is now available online for this important event, which will be held March 21 to 23 in Hollywood, Fla. Complete conference information, including a detailed schedule of events, is also available now on REIT.com.
More than 40 sessions, roundtables and events provide attendees with many opportunities to hear the latest legal, financial and accounting insights concerning capital markets, financial standards, global investment opportunities, SEC policies, tax updates and more. The educational program provides attendees with the opportunity to earn up to 22 hours of CPE credits or 18 hours of CLE credits.
Visit the REITWise 2012 home page for complete event information and online registration.
(Contact: Katelyn Rowland at krowland@nareit.com)
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