Implied Capitalization Rates Risk Premiums by she20208

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									Implied Capitalization Rates & Risk Premiums
    8.0%                                                                                                      $500,000,000



    7.0%                                                                                                      $450,000,000



    6.0%                                                                                                      $400,000,000



    5.0%                                                                                                      $350,000,000

                                                               Total Multi-Residential Sales Volume
    4.0%                                                       Implied Capitalization Rate - CAP REIT         $300,000,000
                                                               Altus Survey Capitalization Rate
                                                               5 Year Benchmark Bond Plus Spread
    3.0%                                                       Implied Risk Premium - CAP REIT                $250,000,000
                                                               Implied Risk Premium - Altus Survey

    2.0%                                                                                                      $200,000,000



    1.0%                                                                                                      $150,000,000



    0.0%                                                                                                      $100,000,000



    (1.0%)                                                                                                    $50,000,000



    (2.0%)                                                                                                    $0
             22-Feb-07   15-May-07   15-Aug-07   13-Nov-07   20-Feb-08       15-May-08            14-Aug-08




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