Real Estate Investment Trust Update
REIT Valuation Stats for Retail & Health Care Sectors

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May 2004

First week summary:
   The Shopping Center sector prices ended the week with a 9.10% decrease year-to-date [vs a 6.36% decrease last week] and has fallen 19.17% [vs 16.76% last week] since Q-1's end. The Mall sector ended with a year-to-date loss of 8.85% [vs a loss of 5.09% last week] and has fallen 23.96% [vs 20.81% last week] since Q-1's end. The Health sector finished the week with a 8.62% year to date loss [vs 5.43% last week] for the year and has fallen 20.43% [vs 17.57% last week] since Q-1's end.
   The Shopping Center sector now has an average yield of 6.42% [vs 6.20% last week]. The Mall sector average yield is now 5.81% [vs 5.57% last week]. The Health Care sector average yield is now 7.60% [vs 7.27% last week]. FFO estimates are updated on all retail sectors through 4-30.
   The 10-year note's yield rose to 4.77% [vs 4.534% last week]. The 30-year bond was yielding 5.46% [vs 5.315% last week].

Second week summary:       FFO's Updated 5-14
   During a week when the 10-year's yield was flat, four of the six REIT sectors followed on these pages rose. The Shopping Center sector prices ended the week with a 8.59% decrease year-to-date [vs a 9.10% decrease last week] and has fallen 18.73% [vs 19.17% last week] since Q-1's end. The Mall sector ended with a year-to-date loss of 7.14% [vs a loss of 8.85% last week] and has fallen 22.58% [vs 23.96% last week] since Q-1's end. The Health sector finished the week with a 9.68% year to date loss [vs 8.62% last week] for the year and has fallen 21.32% [vs 20.43% last week] since Q-1's end. Falling FFO expectations hurt this sector, while rising FFO expectations helped both retail and mall sectors.
   The Shopping Center sector now has an average yield of 6.38% [vs 6.42% last week]. The Mall sector average yield is now 5.69% [vs 5.81% last week]. The Health Care sector average yield is now 7.67% [vs 7.60% last week].
   The 10-year note's yield was up 1 basis point to 4.78% [but reached 4.854% during the week]. The 30-year bond was yielding 5.49% [vs 5.46% last week]. The two year's yield ending at 2.54% and the 5 year at 3.90%. The Dow lost 1% for the week and the Nasdaq fell 0.7%. The S&P 500 fell 0.3%.
   April's core CPI had a larger-than-expected rise. The overall CPI rose 0.2% in April. The core CPI has risen at a 3% annualized pace in the first four months of 2004, up from 1.1% in 2003. A 0.8% surge in industrial production for April, the biggest monthly rise since November 2003, should have also been bearish news. Factory capacity use jumped to 76.9% in April, the highest level since July 2001. Economists had looked for a 0.4% increase in the industrial production index and a 76.7% reading on capacity utilization, according to a Dow-CNBC survey.

Third week summary:
   This week the 10-year's yield fell, and all six of the REIT sectors followed on these pages rose. The Shopping Center sector prices ended the week with a 6.36% decrease year-to-date [vs a 8.59% decrease last week] and has fallen 16.73% [vs 18.73% last week] since Q-1's end. The Mall sector ended with a year-to-date loss of 4.60% [vs a loss of 7.14% last week] and has fallen 20.44% [vs 22.58% last week] since Q-1's end. The Health sector finished the week with a 7.32% year to date loss [vs 9.68% last week] for the year and has fallen 19.30% [vs 21.32% last week] since Q-1's end.
   The Shopping Center sector now has an average yield of 6.24% [vs 6.38% last week]. The Mall sector average yield is now 5.55% [vs 5.69% last week]. The Health Care sector average yield is now 7.48% [vs 7.67% last week].
   In late trading Friday, the 10-year Treasury note was yielding 4.76%, the 30-year bond - 5.46%, the five-year note - 3.90%, the three-year note - 3.16% and the two-year note - 2.56%.

Fourth week summary:
   The Shopping Center sector prices ended the week with a 0.75% decrease year-to-date [vs a 6.36% decrease last week] and has fallen 11.79% [vs 16.73% last week] since Q-1's end. The Mall sector ended with a year-to-date gain of 2.42% [vs a loss of 4.60% last week] and has fallen 14.49% [vs 20.44% last week] since Q-1's end. The Health sector finished the week with a 1.81% year to date loss [vs 7.23% last week] for the year and has fallen 14.53% [vs 19.30% last week] since Q-1's end. The Shopping Center sector now has an average yield of 5.90% [vs 6.24% last week, a 34 basis point change]. The Mall sector average yield is now 5.17% [vs 5.55% last week, a 38 basis point change]. The Health Care sector average yield is now 7.06% [vs 7.48% last week, a 42 basis point change].
    At the 2 p.m. early close, the 10-year Treasury note was yielding 4.651% [vs 4.76% last week], the 30-year bond - 5.344% [5.46% last week], the five-year note - 3.80% [vs 3.90] and the two-year note - 2.544% last week].


Shopping Center Update for 5-28-04

Notes: 02 FFO's for AKR and RPT were taken from their year-end stats release, and were substantially different for numbers in the WSJ database.


Mall Update for 5-28-04


Health Care Update for 5-28-04

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