Slide Title44 points SubTitle32 points

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Harvey E. Green President/CEO
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U.S. Economic Conditions FavorableEmployment
Above Prior Peak
5/03 1/06 4.7 Million
2/01 5/03 -2.7 Million
Non-Farm Employment (millions)
Jan-06
Sources Marcus Millichap Research Services,
BLS
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Top-Line Inflation Skewed By Energy PricesCore
Prices Under Control (For Now)
Crude Oil (price per barrel)
Year-Over-Year Change
Forecast
Sources Marcus Millichap Research Services,
BLS, Federal Reserve
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Record Home Price Appreciation Cooling Median
Existing Single-Family Home Price
Data points growth from 2000-2005
72
Median Home Price
69
49
37
38
Sources Marcus Millichap Research Services,
National Association of Realtors
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Median Home Price Change By Market2000 to 2005
Source Marcus Millichap Research Services
Sources Marcus Millichap Research Services,
National Association of Realtors
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U.S. Housing Market Cooling EvidentMonths
Supply of Inventory Rising
58.9
YOY Change
25.6
Sources Marcus Millichap Research Services,
National Association of Realtors
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U.S. Single-Family Home Price to Apartment Rent
Ratio
20-Year Average (1981-2001)
Home Price to Apartment Rent Ratio
Sources Marcus Millichap Research Services
8
Conversion Volume Outpacing Ground-Up
Development Nationally
Sources Marcus Millichap Research Services,
Real Capital Analytics
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Apartment Vacancy Recovery to Continue in 2006
and Beyond
Completions (Thousands of Units)
Forecast
Sources Marcus Millichap Research Services,
Reis, U.S. Census Bureau
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Conversions Drive Most Rapid Drop in
VacancyUnits Sold for Conversion as a of
Rental Stock 2003-2005
Source Marcus Millichap Research Services
Sources Marcus Millichap Research Services,
Reis
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Concession Burn in Full Swing, Highest Effective
Rent Growth Since 2000 Expected
Asking Rent Growth
Effective Rent Growth
Forecast
Sources Marcus Millichap Research Services,
Reis
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Top 10 U.S. Apartment Markets By Vacancy
Rate2006 Forecast
Forecast
Sources Marcus Millichap Research Services,
Reis
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Bottom 10 U.S. Apartment Markets By Vacancy
Rate2006 Forecast
Forecast
Sources Marcus Millichap Research Services,
Reis
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U.S. Renter Demographics Turning Positive
Change in Population
Forecast
Sources Marcus Millichap Research Services,
Economy.com
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U.S. Apartment Fundamentals Catching Up To
Pricing Gradually
Sources Marcus Millichap Research Services
CoStar Group, Inc., Reis
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Conversions, Buyer Demand Pressuring So. Cal
Apartment Prices - Median Price per Unit
Condo Conversion Price/Premium
220,000 70
241,000 60
149,000 40
193,000 40
Sources Marcus Millichap Research Services,
CoStar Group, Inc.
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Harvey E. Green President/CEO