As Investment Markets Remain Volatile, REIT Sector Called 'Safe Haven'

Apr 25, 2001, 01:00 ET from Lend Lease Real Estate Investments, Inc.

    BERKELEY, Calif., April 25 /PRNewswire/ -- According to noted economist
 and commercial real estate expert Dr. Kenneth T. Rosen, the investment
 performance of real estate investment trusts during the "modern REIT era" that
 began in 1993 has shown that REITs provide superior risk-adjusted returns when
 investment markets are volatile.
     The findings of Dr. Rosen, professor at the University of California,
 Berkeley's Haas School of Business and chairman of Lend Lease Rosen Securities
 LLC., are detailed in a research paper released by the latter, the real estate
 securities affiliate of Lend Lease Real Estate Investments, Inc.  The paper is
 titled, "Real Estate Investment Trusts: A Safe Haven in Volatile Financial
 Markets."
     The paper discusses the substantial growth of the REIT sector since the
 Taubman Realty IPO of late 1992, and examines returns, standard deviations of
 returns and cross correlations of returns subsequently.  While mean REIT
 returns (11.5 percent) through the end of 2000 trailed the S&P 500
 (14.7 percent), NASDAQ (17.7 percent) and utilities stocks (12.5 percent),
 they exceeded private real estate (9.1 percent), international stocks
 (7.2 percent), bonds (7.6 percent), and small-cap stocks (9.9 percent).
 Significantly, during the overall stock market downtown of 2000 and so far in
 2001, REITs have outperformed all the broad stock indices and have
 outperformed bonds on a cumulative basis.
     The report finds that REITs have a good expected return even in a
 recessionary environment and have a low cross correlation with domestic,
 international and technology stocks and with domestic bond markets.  Investors
 holding REITs in a mixed asset portfolio can substantially improve the risk-
 return characteristics of an overall portfolio.
     Lend Lease Rosen Securities provides institutional investors and high net
 worth individuals with a sophisticated, research-driven approach to Real
 Estate Investment Trust (REIT) investments. The firm is an affiliate of Lend
 Lease Real Estate Investments, one of the largest real estate investment
 managers in the world and a leading U.S. real estate advisor to pension funds.
     On a worldwide basis the Lend Lease Group is an integrated real estate
 funds management and services business comprising funds management, project
 management and construction and property development. In real estate funds
 management, Lend Lease provides equity and debt origination and management, in
 public and private markets. Lend Lease provides project management and
 construction services in almost 40 countries, usually on a fee for service
 basis, for a blue chip client base with a high level of repeat business. In
 property development, Lend Lease has expertise in commercial, retail and
 complex urban mixed use developments, with a strong retail focus, in Europe,
 Asia, Australia and the US, utilizing primarily third party capital.
 
     The complete report is available at http://www.lendleaserei.com or can be
 requested by sending an e-mail to contactus@lendleaserei.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X42513344
 
 

SOURCE Lend Lease Real Estate Investments, Inc.
    BERKELEY, Calif., April 25 /PRNewswire/ -- According to noted economist
 and commercial real estate expert Dr. Kenneth T. Rosen, the investment
 performance of real estate investment trusts during the "modern REIT era" that
 began in 1993 has shown that REITs provide superior risk-adjusted returns when
 investment markets are volatile.
     The findings of Dr. Rosen, professor at the University of California,
 Berkeley's Haas School of Business and chairman of Lend Lease Rosen Securities
 LLC., are detailed in a research paper released by the latter, the real estate
 securities affiliate of Lend Lease Real Estate Investments, Inc.  The paper is
 titled, "Real Estate Investment Trusts: A Safe Haven in Volatile Financial
 Markets."
     The paper discusses the substantial growth of the REIT sector since the
 Taubman Realty IPO of late 1992, and examines returns, standard deviations of
 returns and cross correlations of returns subsequently.  While mean REIT
 returns (11.5 percent) through the end of 2000 trailed the S&P 500
 (14.7 percent), NASDAQ (17.7 percent) and utilities stocks (12.5 percent),
 they exceeded private real estate (9.1 percent), international stocks
 (7.2 percent), bonds (7.6 percent), and small-cap stocks (9.9 percent).
 Significantly, during the overall stock market downtown of 2000 and so far in
 2001, REITs have outperformed all the broad stock indices and have
 outperformed bonds on a cumulative basis.
     The report finds that REITs have a good expected return even in a
 recessionary environment and have a low cross correlation with domestic,
 international and technology stocks and with domestic bond markets.  Investors
 holding REITs in a mixed asset portfolio can substantially improve the risk-
 return characteristics of an overall portfolio.
     Lend Lease Rosen Securities provides institutional investors and high net
 worth individuals with a sophisticated, research-driven approach to Real
 Estate Investment Trust (REIT) investments. The firm is an affiliate of Lend
 Lease Real Estate Investments, one of the largest real estate investment
 managers in the world and a leading U.S. real estate advisor to pension funds.
     On a worldwide basis the Lend Lease Group is an integrated real estate
 funds management and services business comprising funds management, project
 management and construction and property development. In real estate funds
 management, Lend Lease provides equity and debt origination and management, in
 public and private markets. Lend Lease provides project management and
 construction services in almost 40 countries, usually on a fee for service
 basis, for a blue chip client base with a high level of repeat business. In
 property development, Lend Lease has expertise in commercial, retail and
 complex urban mixed use developments, with a strong retail focus, in Europe,
 Asia, Australia and the US, utilizing primarily third party capital.
 
     The complete report is available at http://www.lendleaserei.com or can be
 requested by sending an e-mail to contactus@lendleaserei.com.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X42513344
 
 SOURCE  Lend Lease Real Estate Investments, Inc.