2007 - The biggest year yet for REIT acquisitions

2007 will be remembered as a phenomenal year for REIT acquisitions.

We saw 19 of the REITs we follow acquired during 2006, for total
valuation of $53.2 billion. This was a major increase from 2005,
when we saw 9 REITs acquired for a total valuation of $18.5 billion.

So far in 2007, 11 REIT mergers and acquisitions have been completed
for total valuation of $63.6 billion. Another 6 deals are pending for
total valuation of $18.2 billion. As a result of the $39.0 billion
acquisition of Equity Office Properties Trust by The Blackstone Group
in February, 2007, acquisitions are running well ahead of 2006.

Valuations, as measured by the ratio of total cap to FFO, have increased,
with the valuation of Equity Office Properties Trust at 45.3X total cap/FFO
setting the direction higher.

Average valuation for 2007 completed transactions is 42.0X, up from
31.3X for 2006 and 33.6X for 2005.

(Please note that we include the Financial REITs in our reporting, a group
often overlooked by other commentators.)