A CRUDE ROLLER-COASTER RIDE (AVERAGE MONTHLY PRICE PER BARREL)*

Crude oil prices have a direct bearing on the U.S. economy. Sharply rising gasoline prices, for example, act as a tax on consumers, slow consumer spending and weaken equity markets. In the second and third quarters of 2004, oil prices rose 40% on strong global demand and fear of supply interruptions caused by war and terrorism, according to Rosen Consulting Group. As of Dec. 16, the average monthly price was $42.93 per barrel.

*Prices refer to the domestic spot price per barrel of West Texas Intermediate-Cushing, a type of crude oil

FOREIGN INVESTORS GRAVITATE TO OFFICE BUILDINGS

The U.S. office market is the preferred property type among foreign real estate buyers. Nearly 75% of acquisitions by foreign investors during the first three quarters of 2004 were in the office sector, with retail finishing a distant second. What's more, about half of all money flowing into the office sector (49%) went into Manhattan buildings, according to Real Capital Analytics, which tracks deals $5 million and higher.

MULTIFAMILY REITS: A THANKFUL NOVEMBER

Both the SNL Multifamily REIT and Equity REIT indexes broke new territory mid-way through November 2004 with year-to-date price increases of 22.5% and 21.4% respectively. Despite backing away from the yearly highs, both indexes finished the month in positive territory, with the multifamily sector maintaining its slight edge by one-half of 1 percent.

Company Name Closing Price($) Price Change Nov.(%) Equity Market Cap($M)
Century Realty Trust 16.75 16.32 30.7
Presidential Realty Corp. 9.40 11.90 36.7
GMH Communities Trust 13.40 11.67 850.3
American Campus Communities Inc. 20.90 10.58 263.7
United Dominion Realty Trust Inc. 22.99 9.06 3,209.1
Archstone-Smith Trust 36.50 8.79 8,055.3
AvalonBay Communities Inc. 71.10 8.60 5,179.5
Camden Property Trust 49.03 8.00 2,078.1
Post Properties Inc. 34.10 6.26 1,447.7
Summit Properties Inc. 31.85 5.01 1,108.7
Investors Real Estate Trust 10.56 4.04 593.6
Associated Estates Realty Corp. 9.82 3.26 193.9
AMLI Residential Properties Trust 32.49 3.24 880.2
Essex Property Trust Inc. 80.53 2.64 2,047.9
Town and Country Trust 28.20 2.10 561.3
Cornerstone Realty Income Trust Inc. 10.01 1.93 581.9
BRE Properties Inc. 40.64 1.85 2,089.4
Equity Residential 33.71 1.08 10,229.5
Mid-America Apartment Communities Inc. 39.46 0.33 918.8
Home Properties Inc. 41.18 0.07 2,021.8
Apartment Investment and Management 36.37 -0.87 3,842.3
America First Apartment Investors Inc. 12.07 -1.07 126.8
Gables Residential Trust 35.67 -2.27 1,196.1
Roberts Realty Investors Inc. 7.14 -9.51 51.6
SNL Multi-Family REIT Index % Price Change 2.90
SNL Equity REIT Index % Price Change 2.39
Source: SNL Financial


HOT HAND IN VEGAS: JOB GROWTH

Nevada has become the land of opportunity. The state's unemployment rate fell to 3.4% in October 2004, well below the national average of 5.5%. In the Las Vegas metro area, construction jobs rose 11% during the 12- month period ending in October. New hotels and single-family homes accounted for the bulk of construction activity, reports The Center for Business and Economic Research at the University of Nevada, Las Vegas.

Metro Area Total Payroll Employment October 2003 Total Payroll Employment October 2004 Jobs Added Percent Change
Las Vegas 830,713 876,591 45,878 5.5%
Washington, D.C. 2,838,895 2,914,090 75,195 2.6%
Phoenix 1,627,337 1,667,264 39,927 2.5%
Riverside, Calif. 1,094,878 1,121,738 26,860 2.5%
Seattle, Wash. 1,339,500 1,367,757 28,257 2.1%
Houston 2,090,940 2,119,694 28,754 1.4%
San Diego 1,248,333 1,263,820 15,487 1.2%
Denver 1,138,505 1,151,295 12,790 1.1%
New York 4,076,800 4,118,188 41,388 1.0%
Atlanta 2,161,896 2,183,359 21,463 1.0%
Source: Rosen Consulting Group and Bureau of Labor Statistics