REITs fall into three broad categories: Equity REITs: (96.1%) Equity REITS invest in and own properties (thus responsible for the equity or value of their real estate assets). Their revenues come principally from their properties' rents. Mortgage REITs: (1.6%) Mortgage REITs deal in investment and ownership of property mortgages. These REITs loan money for mortgages to owners of real estate, or invest in (purchase) existing mortgages or mortgage backed securities. Their revenues are generated primarily by the interest that they earn on the mortgage loans. Hybrid REITs: (2.3%) Hybrid REITs combine the investment strategies of Equity REITs and Mortgage REITs by investing in both properties and mortgages. Individual REITs are able to distinguish themselves by specialization. REITs may focus their investments geographically (by region, state, or metropolitan area), or in property types (such as retail properties, industrial facilities, office buildings, apartments or healthcare facilities). Certain REITs choose a broader focus, investing in a variety of types of property and mortgage assets across a wider spectrum of locations. The current REIT industry's investment choices can be broken down by property type as follows: Retail 20.1% Residential 21.0% Industrial/Office 33.1% Specialty 2.3% Health Care 3.8% Self Storage 3.6% Diversified 8.5% Mortgage Backed 1.5% Lodging/Resort 6.1% Please Note Figures and percentages listed above are from NAREIT, First Quarter 2001.

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