STRONG SHOWING BY OFFICE REITS

In the month of June, the top-performing office REITs substantially outperformed the broader SNL REIT market index, which measured a mere 2.33% price increase.

Company Name Price Change June (%) Price as of of 5.28.04 Price as of 6.30.04 Implied Market Capitalization
($M)**
Parkway Properties Inc.
(PKY)
10.99 40.05 44.45 488.4
Corporate Office
Properties Trust (OFC)
7.11 23.2 24.85 1,065.5
Reckson Associates
Realty Corp. (RA)
5.53 26.02 27.46 1,976.3
Kroger Equity Inc. (KE)* 4.14 22.2 23.12 622.4
Mack-Cali Realty 3.55 39.96 41.38 2,807.2
Corp. (CLI)
*Company changed its name to CRT Properties (CRO) effective July 1, 2004.
**Implied market cap is market capitalization of common equity, assuming the conversion of all operating partnership units into common stock.
Source: SNL Financial


GLA KINGPIN: KING OF PRUSSIA PLAZA

There were about 1,130 regional and superregional malls in the United States in 2003, according to estimates by the International Council of Shopping Centers. The average mall size was 857,439 sq. ft.

Five Largest Retail Centers in the United States
Name Location GLA
King of Prussia Plaza King of Prussia, Pa. 2.85 million sq. ft.
South Coast Plaza Costa Mesa, Calif. 2.8 million sq. ft.
Mall of America Bloomington, Minn. 2.78 million sq. ft.
(building area is 4.2 million sq. ft.)
The Galleria Houston, Texas 2.4 million sq. ft.
Woodfield Mall Schaumburg, III. 2.22 million sq. ft.
Source: National Research Bureau, International Council of Shopping Centers and company annual reports


CHEAP LABOR

American companies looking for a cheap source of labor are turning to countries such as India to save money. For example, a telephone operator who is paid $12.57 per hour in the U.S. garners less than $1 per hour in India. Office owners — already battling double-digit vacancy rates — are feeling the added pressure of Corporate America's decision to outsource some jobs internationally.

Hourly Wages for Selected Occupations in U.S. and India, 2002-2003
U.S. Occupation India
$12.57 Telephone Operator Under $1
$13.17 Health Record
Technologists/Medical
$1.50 - $2
$15.17 Payroll Clerk $1.50 - $2
$17.86 Legal Assistant/Paralegal $6 - $8
$23.35 Accountant $6 - $15
$33 - $35 Financial Researcher/Analyst $6 - $15
Source: U.S. wages are from the Bureau of Labor Statistics, National Compensation Survey, July 2002; India wages are from interviews, business literature and employment want ads