By Art Coppola

The REIT industry has enjoyed a productive working relationship with Congress ever since 1960 when Congress created REITs. With the birth of REITs, Congress ensured that each and every investor would have the ability to easily and efficiently access income-producing real estate, which most could not afford to own and could not manage otherwise. NAREIT also was established in 1960 and, since then, its ongoing relationship with Congress has led to significant enhancement of the initial REIT legislation. One of NAREIT's principal objectives always has been to keep the REIT rules up to date so that REITs are fully competitive in the real estate investment marketplace.

In keeping with this goal, Representative Joseph Crowley (D-NY) and Representative Eric Cantor (R-VA) introduced the REIT Investment Diversification and Empowerment Act (RIDEA), a bill that would allow REITs to own and operate real estate more efficiently here in the United States, as well as around the world to the House of Representatives in February.

Also, NAREIT's continuing dialogue with Congress also helped establish broad bipartisan support last year for the addition of a real estate investment option to the Thrift Savings Plan, the defined contribution plan for federal workers. By the close of the 109th Congress, this legislation, which ultimately moved to the House Government Reform Committee chaired by Representative Thomas Davis of Virginia, had 201 co-sponsors, including the House majority and minority leaders. This sets the stage for 2007.

Additionally, NAREIT joins with other organizations that represent commercial insurance policyholders to call for a permanent solution that would ensure the continued availability and affordability of terrorism risk insurance after the scheduled expiration of the Terrorism Risk Insurance Extension Act (TRIEA) at the end of 2007.

These issues, as well as others, now have become the business of the 110th Congress. The dramatic change brought about by the 2006 mid-term elections has placed different representatives, senators and staffs into key positions where they will have important responsibilities for determining the future of these issues. NAREIT's practice of building relationships on both sides of the aisle has positioned us well to deal with this change. However, this shift makes it even more important for the REIT industry to maintain an active, open and effective dialogue with Congress this year to ensure that its members understand our industry and its needs.

I believe 2007 can be a year of important progress in the policy arena. I look forward to working with NAREIT's members as we reach out on a bipartisan basis to the 110th Congress, and I encourage each of you to support these initiatives.

Art Coppola
NAREIT CHAIR
CHAIRMAN & CEO, THE MACERICH COMPANY