ExecutiveBrief (October 15, 2010)

Results of the FTSE NAREIT U.S. Real Estate Index Series 2010 Annual Review

I am writing to let you know that FTSE and NAREIT announced today the results of the annual review of the FTSE NAREIT U.S. Real Estate Index Series ("Index"). The annual review is intended to ensure that the Index continues to accurately represent the publicly traded REIT industry in the United States and, thereby, provide all market participants relevant and timely benchmarks for analysis, capital allocation and investment management.

The changes announced today are the result of discussions with the FTSE NAREIT U.S. Real Estate Index Advisory Committee, a public Consultation with interested parties, including members of the investment community, and a formal evaluation by NAREIT's elected officers and executive leadership of all comments and suggestions submitted during the review.

Revisions to the Ground Rules consistent with the changes announced today as well as other changes with respect to management of the Index will be made available on or before November 20, 2010 and will take effect on December 20, 2010.

Headline Indexes
Effective December 20, 2010:

• The FTSE NAREIT All REITs Index will be maintained.
• The FTSE NAREIT Composite Index will be maintained.
• The FTSE NAREIT Real Estate 50 Index will be maintained.
• The FTSE NAREIT Mortgage REITs Index will be maintained.
• The FTSE NAREIT Hybrid REITs Index will be discontinued; in the future, companies that do not qualify as Equity REITs will be deemed Mortgage REITs.
• The FTSE NAREIT Equity REITs Index will be designated the FTSE NAREIT All Equity REITs Index and will be maintained.
• The FTSE NAREIT Equity REITs Index will include all Equity REITs not designated as Timber REITs.

Property Sector Indexes
Effective December 20, 2010:

• The FTSE NAREIT Equity Specialty Index will be discontinued.
• Current constituents of the FTSE NAREIT Equity Specialty Index will be included in the FTSE NAREIT Equity Diversified Index, which will include all Equity REITs that do not meet the criteria of another Property Sector Index.
• The FTSE NAREIT All Equity Timber Index will be instituted as part of the FTSE NAREIT All Equity REITs Index and will include all Equity REITs designated as Timber REITs.

To view the new structure of the Index, click here.





Steven A. Wechsler
President and CEO
NAREIT