By David Simon

Growth of the global real estate marketplace is continuing at a rapid pace and on many fronts. From the expansion of U.S. REITs into foreign markets to the international adoption of the REIT model, there are exciting new developments nearly every week.

As the chief executive officer of a company (Simon Property Group) with real estate investments in Europe and Asia, I recognize the importance of a global profile for our company and our industry. The same is true of select other U.S. REITs that have also established a presence in other countries. U.S. REITs now have real estate investments in more than two dozen countries spanning the globe.

However, just as companies are going abroad, so, too is the REIT model itself. Several countries have or are in the process of adopting structures similar to U.S. REITs. Nearly 20 nations have already put into place the legislative framework necessary to create tax transparent public real estate investment vehicles, and several others, including the United Kingdom and Germany, are working toward that same goal.

NAREIT has a vital role to play in expanding the reach of the securitization of real estate around the world. One critical area is in the development and implementation of international financial standards. NAREIT continues to cultivate its relationship with the International Accounting Standards Board and is working to increase the U.S. industry's role in the IASB standard-setting process.

NAREIT's "Cross Border Task Force" also continues its efforts to promote the adoption of tax treaties and other policies to remove barriers to the public ownership of real estate.

NAREIT stands ready to advise other countries on the adoption of REIT-like legislation, as we did in July 2004 with a submission to authorities in the United Kingdom. In that submission, we stated our belief that adopting a structure that resembles the United States' REIT vehicle would capitalize on our 45 years of experience and promote a number of the U.K. government's objectives.

Although many REITs have only been public companies for a little more than a decade, the U.S. has the benefit of a structure that has successfully evolved for more than 40 years. REITs in the United States have grown from a fledgling industry in the 1960s to a significant economic force comprised of approximately 200 publicly traded REITs. The securitization of real estate worldwide is expected to accelerate and NAREIT will have a major impact on this important effort.

NAREIT continues to solidify its partnership with the European Public Real Estate Association (EPRA). The two organizations worked together to create what is now the FTSE EPRA/NAREIT Global Real Estate Index Series, the leading benchmark for real estate investors the world over. I believe it is important that we strengthen the link between our two groups in this increasingly interconnected public real estate marketplace. In addition, both NAREIT and EPRA are pleased to see the development of the Asian Public Real Estate Association (APREA) and look forward to working together on global issues.

Over the course of the past year as NAREIT Chair, I have witnessed firsthand the globalization of our industry. It has been a privilege to lead NAREIT as it contributed to this worldwide phenomenon of the global securitization of real estate.

I encourage all of you to work with NAREIT going forward as we demonstrate how REITs are building dividends, increasing diversification and enhancing returns worldwide.