REITs have certainly aged well. Their 45-year history has featured several refinements and enhancements that have made investing in REITs a more efficient and beneficial investment alternative for large and small investors alike.

As we all know by now, REITs were created by Congress with a specific purpose in mind: to make investment in large-scale, diversified portfolios of income-producing real estate available to all investors. Over the past 45 years, REITs have more than lived up to that mission. The NAREIT Composite REIT Index has outperformed the S&P 500, Russell 2000, NASDAQ Composite and Dow Jones Industrial Average on a total return basis over the one, three, five, 10, 15 and 30-year periods. Additionally, the average REIT dividend yield is still more than double that of the average dividend yield for the S&P 500.

This stellar performance has not gone unnoticed as individual and institutional investors have availed themselves of the dividend and diversification benefits REITs provide. In addition, the 401(k) community, both sponsors and providers, are recognizing the value REITs bring to a diversified portfolio and adding a real estate option for plan participants.

Looking back to Sept. 14, 1960 when President Eisenhower signed the Cigar Excise Tax Extension of 1960, which contained the REIT Act, hindsight shows us what followed seemed inevitable. But looking at this issue's cover story, it is clear that the course the industry has taken has been shaped by a number of significant events, trends and individuals. These key moments, along with countless others, combined to create the thriving industry we have today.

However, there is a lot more history to be made. Forty-five years is still young in the overall corporate landscape. The listed real estate industry is now well positioned to continue exceeding the initial expectations set forth by Congress over the next 45 years.

Also In This Issue

Even though hindsight tells us differently, you couldn't have expected anyone to have foreseen what was to come. Among the earliest believers were the analysts charged with covering this newly established industry. Portfolio caught up with six of the industry's pioneers to get their take on what the industry was like in the early days and where they see it headed in the future.

Exclusively available online, we look at what lies ahead for the retail REIT sector following major industry acquisitions and other notable events.

Matthew Bechard
Editor-in-Chief