Many people ask, now that the Taxable REIT Subsidiary legislation has been signed into law and will go into effect in January 2001, "what's next?"

What's next is the continued work by NAREIT and all of our members to come to a resolution regarding the way that we report our earnings. We still have not resolved the issue of FFO. We must all focus on how to make our industry's supplemental performance measure more accessible and understandable to the broader, non-REIT-dedicated investment community. Personally, I feel that we should move away from FFO to a clearer, more defined earnings definition that will allow for a more 'apples to apples' comparison between our real estate operating companies and the rest of corporate America. I am sure that this subject will be addressed in some detail at the Law and Accounting Conference. Settling our differences and introducing a new standard can only be beneficial for our industry.

Welcome to the rest of the economy...
As the real estate industry expands out of its classic role as a collector of rents one can expect the creation of a new set of challenges. We are no longer just a collection of brick and mortar, we are now operating companies with direct access to millions of participants in the new economy. Our operating companies are in position to provide goods and services to our millions of customers and that will mean dealing with new competitors.

For example...
On March 21, 2000 hearings were held on Capitol Hill to discuss the issue of Forced Access. The RealAccess Alliance is leading the charge on this issue—making sure that the rights of property owners are not trampled. Experts testifying before the House Judiciary Constitution Subcommittee pointed out to members of Congress that the rule being considered by the Federal Communications Commission, which would allow any and all telecommunication providers to enter and occupy privately owned buildings so that they could install their own wiring and equipment, while providing little or no compensation to building owners, would both violate the constitutional rights of landowners and is anti-competitive. There is no problem in the marketplace that requires government intervention. These are good times in both the real estate and telecommunications industries. Property owners across the country meet with and sign contracts with telecommunications providers everyday. The last thing we need is more government regulation on a common sense business issue.

The efforts of NAREIT's Government Relations Department, REITPAC and the coalescing of our members on the Taxable REIT Subsidiary legislation are sending a message to Congress that our interests need to be considered. We, with your continued support, will continue to make our case.

Enjoy the summer.