GLOBAL REAL ESTATE FUND by aku11392

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									D ecember 31, 2009




                      GLOBAL
                      REAL ESTATE
                      FUND
                     Annual Report




T. ROWE PRICE
                                     ®


                                         ®
 T . R owe P rice G lobal R eal E state F und
 HIGHLIGHTS
 •	 Global	real	estate	securities	continued	their	positive	momentum	into	
    the second half of 2009, building richly on first-half gains.

 •	 Returns	were	positive	in	virtually	all	major	markets,	reflecting	a	global	
    recovery in equities as investors returned to risk investments.

 •	 Turnover	in	the	portfolio	remained	below	industry	averages,	an	indica-
    tion of our long-term investment horizon, but we were active during the
    period researching new investment opportunities.

 •	 Challenges	remain	across	the	globe	as	markets	strive	to	recover	
    from the global financial crisis, but we are confident that the worst
    has passed.




The views and opinions in this report were current as of December 31,
2009. They are not guarantees of performance or investment results and
should not be taken as investment advice. Investment decisions reflect
a variety of factors, and the managers reserve the right to change their
views about individual stocks, sectors, and the markets at any time.
As a result, the views expressed should not be relied upon as a fore-
cast of the fund’s future investment intent. The report is certified under
the Sarbanes-Oxley Act, which requires mutual funds and other public
companies to affirm that, to the best of their knowledge, the informa-
tion in their financial reports is fairly and accurately stated in all material
respects.




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T. Rowe Price Global Real Estate Fund
Manager’s Letter


Fellow Shareholders
Global real estate securities continued their positive momentum into the second half

of 2009, building richly on first-half gains and culminating in full-year total returns

that were quite rewarding for investors. Positive returns were spread broadly across

many markets, though there was marked disparity in the magnitude and timing of the

rewards. Asia’s first-half surge largely led the year’s full recovery, while the U.K. and

U.S. came on strongly in the second half to overcome first-half deficits.


                                                                During the six months
       P erformance C omparison
                                                                ended December 31,
       	                                 Total	Return           2009, the fund posted a
       Periods Ended 12/31/09      6 Months       12 Months     gain of 28.46% compared
       Global	Real	Estate	Fund	      28.46%	         33.62%     with 30.58% for the FTSE
                                                                EPRA/NAREIT Developed
       Global	Real	Estate	
       Fund–Advisor	Class	           28.42	          33.46
                                                                Real Estate Index and
                                                                28.33% for the Lipper
       FTSE	EPRA/NAREIT
                                                                Global Real Estate Funds
       Developed	Real	Estate	Index	 30.58	           38.26
                                                                Index. For the year, the
       Lipper	Global	Real	Estate	                               fund delivered a return
       Funds	Index	                  28.33	          35.92      of 33.62% versus 38.26%
                                                                for the FTSE index and
                35.92% for Lipper. (The return for the Advisor Class was slightly
                lower, reflecting its different fee structure.) Absolute returns were
                excellent, although stock selection in Singapore and Sweden and an
                overweight in U.S. shopping centers detracted most from the fund’s
                relative performance.


      DIVIDEND DISTRIBUTION
               On December 15, 2009, your fund’s Board of Directors declared
               a fourth-quarter income dividend of $0.07 per share and a short-
               term capital gains distribution of $0.19. They were paid out on
               December 17 to shareholders of record on December 15.



               1
MARKET ENVIRONMENT AND STRATEGY
            Returns were positive in virtually all major markets, reflecting a global
            recovery in equities as investors returned to risk investments encour-
            aged by coordinated stimulative fiscal and monetary measures. As
            mentioned, several Asian markets led the full-year recovery, though
            their torrid pace tempered somewhat in the second half. Specifically,
            Hong Kong, China, and Singapore generated outsized 2009 returns,
            achieved largely during the first six months of the year. Japan’s market
            seemed to move sideways through the year, with the country mired in
            uncertainty resulting from a new ruling party, anemic gross domestic
            product growth, and an export-driven economy dealing with a rela-
            tively strong currency.
            In contrast to the markets that were front-end loaded, the U.K. and
            the U.S. enjoyed strong recoveries in the second half. Australia also
                                                                            ended with a strong
        M ajor C ountries P erformance                                      finish, although
 90%                                                                        in local currency
                                                                            terms the returns
 75
                                                                            were less spectacular
 60                                                                         (Australian dollar
 45                                                                         strength generated
                                                                            meaningful returns
 30
                                                                            when translated
 15                                                                         into U.S. currency).
  0
                                                                            Australia’s economy
                                                                            largely sidestepped
-15                                                                         the worst of the
                                                                            global recession
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      FTSE	EPRA/NAREIT	Developed	Real	Estate	Index	returns	for	the	one-year resources in proximity
      period ended 12/31/09.
      Source: Wilshire Atlas.
                                                                            to China. Against
                                                                            this backdrop, the
   90       Australian central bank began to raise interest rates in an effort to
            maintain balanced long-term growth. These rate hikes served to further
   75
            strengthen the country’s currency.
  60
            Hong Kong, meanwhile, with its currency pegged to the U.S. dollar,
  45        maintained low interest rates but in a growth environment related
  30        to mainland China. The low rates contributed to a surge in property
  15

    0

  -15
            2
        values and corresponding strength in property stocks. The challenge
        for China’s leadership will be to prevent potential asset bubbles while
        maintaining targeted economic growth and prosperity. To date, it
        seems that China has employed mostly political rhetoric in an effort to
        slow down price increases, but more concrete policies may be forth-
        coming that could put a damper on property appreciation. That said, it
        is very difficult to predict the future actions of the Chinese government.
        Forecasters may contend that the U.S. government was equally difficult
        to predict, even with one party controlling the executive and legislative
        branches of government. There was a lot of uncertainty related to pros-
        pects for major policy initiatives, including health care and taxation.
        Some observers may have been surprised that U.S. stock markets did
        so well against this backdrop, as investors typically disdain ambiguity.
        However, it appears that the country has stepped back from the preci-
        pice of a financial meltdown, and the removal of such an overhang
        enabled a strong relief rally.
          Though liquidity remained tight, there were some important advances
          made in thawing the capital markets, both in terms of equity and
P ORTFOLIO C OMPOSITION
          debt. Investors were receptive to companies that were able to issue
S ECTOR D IVERSIFIC ATION
                                                        additional equity to
G EOGRAPHIC D IVERSIFIC ATION                           strengthen balance
                                        Other and
                                                                                TITLE
                                                        sheets. Stocks frequently BOX
    Canada
        4%
                                        Reserves
                                        17%
                                                        rebounded after these   TYPE	IN	ALL	
                                                        offerings as investors
     France
                                        United States
                                                        focused more on the
        5%
                                        35%             positives of deleveraging
     United                                             balance sheets than on
   Kingdom                                              the negatives of significant
        7%
                                        Hong Kong       share dilution. Concurrent
      Japan                             13%
                                                        with the equity gains, the
        9%
                                                        credit markets offered
   Australia
       10%                                              opportunities for debt
                                                        refinancing for select
Based on net assets as of 12/31/09.
                                                        companies at terms that—
                                                        while not cheap—were
          at least bearable. This contrasted sharply to earlier periods in which
          capital was largely unavailable to even the best of companies or else
          offered on prohibitively expensive terms. Market volatility was greatly
                        This template contemplate what ultimately constitutes
          reduced, and while we may is used with combo reports! Other	and	Reserves

          the “new normal,” we have at least moved in the right direction.
                                                                Canada

                                                               France

                                                               United Kingdom

                                                               Japan
        3
                                                               Australia
PORTFOLIO REVIEW
          Turnover in the portfolio remained below industry averages, reflecting
          our long-term investment horizon. However, we were active during the
          period researching new investment opportunities. We added shares
          of Iguatemi Empresa de Shopping Centers, an operator of regional
          shopping centers in Brazil. Combined with our investment in Multiplan
          Empreendimentos Imobiliarios, we now have strong exposure to
          rapidly emerging consumer strength in Brazil. (Please refer to our port-
          folio of investments for a complete listing of holdings and the amount
          each represents in the portfolio.)
           In Canada, we were pleased to see that First Capital Realty aban-
           doned its unsolicited bid for Allied Properties. Recall that we believed
           this bidding maneuver was misguided, with a retail specialist pursing
           an office sharpshooter. We have long been attracted to the assets of
           First Capital, and with management’s attention refocused on the basics
                                                       of its business, we felt
 I ndustry D iversification                            comfortable returning to
 	                               Percent	of	Net	Assets
                                                       this name. We also added
                                 6/30/09 12/31/09      shares of Primaris Retail
                                                       Real Estate Investment
 Diversified	                      31.8%	       27.9%
                                                       Trust, which specializes in
 Regional	Mall	                    17.8	        20.4   operating enclosed malls
 Office	                           18.5	        19.2   in Canada. The interests
 Shopping	Center	                  13.5	        12.4   in these focused Canadian
                                                       retail landlords factored
 Apartment	Residential	             6.4	         6.3
                                                       into our decision to elimi-
 Industrial	                        2.5	         3.4   nate the shares of RioCan
 Hotels/Lodging                     3.2          3.0   Real Estate Investment
 Other	Real	Estate	                 0.6	         1.9   Trust, which announced
                                                       its intention to expand
 Self	Storage	                      1.8	         1.9
                                                       into the U.S.
 Healthcare                            0.6          0.6
                                                                        In the U.S. we added
 Other	and	Reserves	                   3.3	         3.0
                                                                        shares of West Coast
 Total	                                      100.0%	         100.0%     specialist Kilroy Realty.
 Historical weightings reflect current industry/sector classifications. The stock languished
                                                                        along with the challenged
            California economy, but we are quite optimistic that the nature of the
            company’s portfolio will lead to rewarding returns when investors
            focus upon a recovery there. Indeed, such a rebound occurred in 2009
            with New York City specialist SL Green Realty, when investors con-
            cluded that rumors of Manhattan’s death proved premature.


         4
     Across the globe, another infill specialist, Hongkong Land Holdings,
     benefited from demand for its prime locations in Hong Kong’s Central
     District. In Continental Europe, fundamentals were relatively secure,
     supporting the stocks of Unibail-Rodamco and Citycon.


OUTLOOK
     We were encouraged by the progress made in 2009, and we believe
     that global advances justified the solid returns generated by real estate
     securities. In several markets, notably emerging markets, growth was
     positive and the focus turned toward sustaining momentum while
     working to control excesses. In lagging markets, progress came in the
     form of slowing rates of decline as a foundation for achieving recovery.
     Challenges remain across the globe as markets strive to recover from
     the global financial crisis, and we caution that more tangible evidence
     will be required to justify the market’s strength. However, we are more
     confident that the worst of the crisis has passed. Although we expect
     to see ongoing negative headlines related to commercial real estate, we
     believe that public real estate companies with access to capital can be
     in a superior position to take advantage of distress in private real estate.
     Having made great strides in strengthening their own balance sheets,
     public real estate companies may well become part of the solution
     instead of part of the problem.


     Respectfully submitted,




     David M. Lee
     President of the fund and chairman of its Investment Advisory Committee
     January 22, 2010
     The committee chairman has day-to-day responsibility for managing the
     portfolio and works with committee members in developing and executing
     the fund’s investment program.




     5
T. Rowe Price Global Real Estate Fund




  R isks of I nvesting
  The fund’s share price can fall because of weakness in the stock market, a particular
  industry, or specific holdings. Stock markets can decline for many reasons, including
  adverse political or economic developments, changes in investor psychology, or heavy
  institutional selling. The prospects for an industry or company may deteriorate because
  of a variety of factors, including disappointing earnings or changes in the competitive
  environment. In addition, the investment manager’s assessment of companies held in a
  fund may prove incorrect, resulting in losses or poor performance even in rising markets.

  Funds	that	invest	only	in	specific	industries	will	experience	greater	volatility	than	funds	
  investing in a broad range of industries. Due to its concentration in the real estate
  industry, the fund’s share price could be more volatile than that of a fund with a broader
  investment mandate. Trends perceived to be unfavorable to real estate, such as changes
  in the tax laws or rising interest rates, could cause a decline in share prices.

  Funds	that	invest	overseas	generally	carry	more	risk	than	funds	that	invest	strictly	in	U.S.	
  assets.	Funds	investing	in	a	single	country	or	in	a	limited	geographic	region	tend	to	be	
  riskier	than	more	diversified	funds.	Risks	can	result	from	varying	stages	of	economic	and	
  political development; differing regulatory environments, trading days, and accounting
  standards;	and	higher	transaction	costs	of	non-U.S.	markets.	Non-U.S.	investments	are	
  also	subject	to	currency	risk,	or	a	decline	in	the	value	of	a	foreign	currency	versus	the	
  U.S. dollar, which reduces the dollar value of securities denominated in that currency.

  G lossary
  Capitalization rate: A ratio, shown as a percentage rate, that estimates the present value
  of	an	income-producing	asset.	Riskier	investments	have	higher	capitalization	rates	and	
  lower present values.

  FTSE EPRA/NAREIT Developed Real Estate Index: A total return index composed of the
  most	actively	traded	real	estate	investment	trusts	and	REIT-type	structures,	designed	to	
  be a measure of global real estate equity performance.

  Libor rate: The	London	Interbank	Offered	Rate,	which	is	a	benchmark	for	short-term	
  taxable rates.

  Lipper indexes:	Fund	benchmarks	that	consist	of	a	small	number	of	the	largest	mutual	
  funds in a particular category as tracked by Lipper Inc.

  Price/earnings ratio (or multiple): A valuation measure calculated by dividing the price
  of	a	stock	by	its	current	or	projected	earnings	per	share.	This	ratio	gives	investors	an	
  idea of how much they are paying for current or future earnings power.

  Real estate investment trusts (REITs): Publicly traded companies that own, develop, and
  operate apartment complexes, hotels, office buildings, and other commercial properties.




              6
T. Rowe Price Global Real Estate Fund



 P ortfolio H ighlights


      TWENTY-FIVE LARGEST HOLDINGS
                                                                                       Percent of
      	                                                   	                            Net	Assets
                                                                                       12/31/09

      Simon	Property	Group		                              	                                 4.9%
      Unibail-Rodamco	                                    	                                 4.9
      Westfield	Group	                                    	                                 4.2
      Sun	Hung	Kai	Properties		                           	                                 3.8
      Hang	Lung	Properties		                              	                                 3.8

      Mitsubishi Estate                                                                     3.6
      Mitsui	Fudosan	                                     	                                 3.0
      Vornado	Realty	Trust	                               	                                 2.3
      AvalonBay	Communities		                             	                                 2.2
      Federal	Realty	Investment	Trust	                    	                                 2.2

      Hongkong Land Holdings                                                                2.2
      Hammerson                                                                             2.1
      Great	Portland	Estates	                             	                                 2.1
      AMB Property                                                                          2.0
      Boston Properties                                                                     2.0

      Equity	Residential	                                 	                                 2.0
      Public Storage                                                                        1.9
      SL	Green	Realty		                                   	                                 1.8
      CFS	Retail	Property	Trust	                          	                                 1.7
      Taubman	Centers		                                   	                                 1.7

      Hufvudstaden                                                                          1.7
      Stockland                                                                             1.6
      PSP Swiss Property                                                                    1.6
      Capitamall	Trust	                                   	                                 1.6
      Shaftesbury                                                                           1.6

      Total		                                                                              62.5%

      Note:	Table	excludes	investments	in	the	T.	Rowe	Price	Reserve	Investment	Fund.




                7
T. Rowe Price Global Real Estate Fund



 P ortfolio H ighlights


      MAJOR PORTFOLIO CHANGES
      Listed in descending order of size.

      Six-Month Period Ended 12/31/09

      Largest Purchases                           Largest Sales
      China	Resources	Land*                       RioCan	Real	Estate	Investment	Trust**
      Starwood	Property	Trust*                    Host	Hotels	&	Resorts**
      Kilroy	Realty*                              Citycon
      Unibail-Rodamco                             Brixton**
      Iguatemi	Empresa	de	Shopping	Centers*       Segro**
      First	Capital	Realty*                       Taubman	Centers
      Hammerson                                   Douglas Emmett
      Primaris	Retail	Real	Estate	Invest	Trust*   Commonwealth	Property	Office
      Allied Properties                           Stockland
      Sun Hung Kai Properties                     Regency	Centers

        P
       *	 osition	added.
        P
      **	 osition	eliminated.




                8
T. Rowe Price Global Real Estate Fund
Performance and Expenses


 G rowth of $10,000


          This chart shows the value of a hypothetical $10,000 investment in the fund over the past
          10 fiscal year periods or since inception (for funds lacking 10-year records). The result is
          compared with benchmarks, which may include a broad-based market index and a peer
          group average or index. Market indexes do not include expenses, which are deducted from
          fund returns as well as mutual fund averages and indexes.


          GLOBAL REAL ESTATE FUND

            As of 12/31/09
$15,000
                   Global	Real	Estate	Fund			$14,429
 14,000
                   FTSE	EPRA/NAREIT	Developed	Real	Estate	Index			$15,092
 13,000
                   Lipper	Global	Real	Estate	Funds	Index $12,629
 12,000
 11,000
 10,000


    10/27/08                                                 12/08                                                  12/09
        Note:	Performance	for	the	Advisor	Class will vary due to its differing fee structure. See returns table below.


 A verage A nnual C ompound T otal R eturn

          This table shows how the fund would have performed each year if its actual (or cumulative)
          returns had been earned at a constant rate.

    Use dashed black line for Lipper Indexes only. Use solid black line for other indexes.
                                                                                                               Since
                                                                                         Inception
     BE SURE TO RETYPE LABELS TO MATCH $ FIGURES AND YEARS ON GRAPH ABOVE WITH THOSE PLOTTED BELOW!!
           Periods	Ended	12/31/09	                                      	               	   One	Year	     10/27/08
           Global	Real	Estate	Fund	                                 	               	        33.62%	        36.53%
   10/27/08                                                  12/08                                                     12/09
           Global	Real	Estate	Fund–Advisor	Class	                   	               	        33.46	         36.28

           Current performance may be higher or lower than the quoted past performance, which
           cannot guarantee future results. Share price, principal value, and return will vary, and you
           may have a gain or loss when you sell your shares. For the most recent month-end perfor-
           mance, please contact a T. Rowe Price representative at 1-800-225-5132 or, for Advisor
           Class shares, 1-800-638-8790. The performance information shown does not reflect the
           deduction of a 2% redemption fee on shares held for 90 days or less. If it did, the perfor-
           mance would be lower.
           Average annual total return figures include changes in principal value, reinvested dividends, and capi-
           tal	gain	distributions.	Returns	do	not	reflect	taxes	that	the	shareholder	may	pay	on	fund	distributions	
           or the redemption of fund shares. When assessing performance, investors should consider both short-
           and long-term returns.



                  9
T. Rowe Price Global Real Estate Fund



 E xpense R atio

        Global	Real	Estate	Fund	          	                    	              	              	         4.73%
        Global	Real	Estate	Fund–Advisor	Class	                 	              	              	         5.00
        The	expense	ratio	shown	is	as	of	the	fund’s	fiscal	year	ended	12/31/08.	This	number	may	vary	from	
        the expense ratio shown elsewhere in this report because it is based on a different time period and, if
        applicable, does not include fee or expense waivers.




 F und E xpense E xample


      As a mutual fund shareholder, you may incur two types of costs: (1) transaction costs, such
      as redemption fees or sales loads, and (2) ongoing costs, including management fees, distri-
      bution and service (12b-1) fees, and other fund expenses. The following example is intended
      to help you understand your ongoing costs (in dollars) of investing in the fund and to com-
      pare these costs with the ongoing costs of investing in other mutual funds. The example is
      based on an investment of $1,000 invested at the beginning of the most recent six-month
      period and held for the entire period.

      Please note that the fund has two share classes: The original share class (“investor class”)
      charges	no	distribution	and	service	(12b-1)	fee,	and	the	Advisor	Class	shares	are	offered	only	
      through	unaffiliated	brokers	and	other	financial	intermediaries	and	charge	a	0.25%	12b-1	
      fee. Each share class is presented separately in the table.

      Actual Expenses
      The first line of the following table (“Actual”) provides information about actual account
      values and expenses based on the fund’s actual returns. You may use the information in this
      line, together with your account balance, to estimate the expenses that you paid over the
      period.	Simply	divide	your	account	value	by	$1,000	(for	example,	an	$8,600	account	value	
      divided	by	$1,000	=	8.6),	then	multiply	the	result	by	the	number	in	the	first	line	under	the	
      heading “Expenses Paid During Period” to estimate the expenses you paid on your account
      during this period.

      Hypothetical Example for Comparison Purposes
      The information on the second line of the table (“Hypothetical”) is based on hypothetical
      account values and expenses derived from the fund’s actual expense ratio and an assumed
      5%	per	year	rate	of	return	before	expenses	(not	the	fund’s	actual	return).	You	may	compare	
      the	ongoing	costs	of	investing	in	the	fund	with	other	funds	by	contrasting	this	5%	hypotheti-
      cal	example	and	the	5%	hypothetical	examples	that	appear	in	the	shareholder	reports	of	the	
      other funds. The hypothetical account values and expenses may not be used to estimate the
      actual ending account balance or expenses you paid for the period.

      Note:	T.	Rowe	Price	charges	an	annual	small-account	maintenance	fee	of	$10,	generally	for	
      accounts	with	less	than	$2,000	($500	for	UGMA/UTMA).	The	fee	is	waived	for	any	investor	
      whose	T.	Rowe	Price	mutual	fund	accounts	total	$25,000	or	more,	accounts	employing	auto-
      matic	investing,	and	IRAs	and	other	retirement	plan	accounts	that	utilize	a	prototype	plan	
      sponsored	by	T.	Rowe	Price	(although	a	separate	custodial	or	administrative	fee	may	apply	to	




               10
T. Rowe Price Global Real Estate Fund



 F und E xpense E xample ( continued )


      such	accounts).	This	fee	is	not	included	in	the	accompanying	table.	If	you	are	subject	to	the	
      fee, keep it in mind when you are estimating the ongoing expenses of investing in the fund
      and when comparing the expenses of this fund with other funds.

      You should also be aware that the expenses shown in the table highlight only your ongoing
      costs and do not reflect any transaction costs, such as redemption fees or sales loads.
      Therefore, the second line of the table is useful in comparing ongoing costs only and will not
      help you determine the relative total costs of owning different funds. To the extent a fund
      charges transaction costs, however, the total cost of owning that fund is higher.


       G lobal R eal E state F und

                                           Beginning                Ending                 Expenses Paid
       	                               Account	Value	         Account	Value	               During	Period*
                                             7/1/09               12/31/09            7/1/09 to 12/31/09
       Investor Class
       Actual	                              $1,000.00	             $1,284.60	                          $6.05
       Hypothetical	(assumes	5%	
       return	before	expenses)	              1,000.00	              1,019.91	                            5.35
       Advisor Class
       Actual	                               1,000.00	              1,284.20	                            6.62
       Hypothetical	(assumes	5%	
       return	before	expenses)	              1,000.00	              1,019.41	                            5.85
         E
        *	 xpenses	are	equal	to	the	fund’s	annualized	expense	ratio	for	the	six-month	period,	multiplied	by	the	
         average account value over the period, multiplied by the number of days in the most recent fiscal half
         year	(184)	divided	by	the	days	in	the	year	(365)	to	reflect	the	half-year	period.	The	annualized	
         expense	ratio	of	the	Investor	Class	was	1.05%,	and	the	Advisor	Class	was	1.15%.




               11
T. Rowe Price Global Real Estate Fund




 F inancial H ighlights                                          For	a	share	outstanding	throughout	each	period


 Investor Class
                                                                                        Year   10/27/08
                                                                                       Ended    Through
                                                                                             ‡          ‡
                                                                                     12/31/09 12/31/08
 NET ASSET VALUE
 Beginning of period                                                                 $ 10.54         $ 10.00

 Investment activities
                                                                                               (1)               (1)
   Net investment income                                                                  0.26          0.07
   Net realized and unrealized gain                                                       3.18          0.73
   Total from investment activities                                                       3.44          0.80

 Distributions
   Net investment income                                                                 (0.33)        (0.05)
   Net realized gain                                                                     (0.19)        (0.19)
   Tax return of capital                                                                  –            (0.02)
   Total distributions                                                                   (0.52)        (0.26)

 NET ASSET VALUE
 End of period                                                                       $ 13.46         $ 10.54

 Ratios/Supplemental Data

 Total return(2)                                                                       33.62%(1) 7.99%(1)
                                                                                             (1)     (1)(3)
 Ratio of total expenses to average net assets                                          1.05% 1.05%
                                                                                               (1)           (1)(3)
 Ratio of net investment income to average net assets                                  2.32%         3.70%
 Portfolio turnover rate                                                               12.4%          0.3%
 Net assets, end of period
 (in thousands)                                                                      $ 17,373 $ 8,311


 ‡
       Per share amounts calculated using average shares outstanding method.
 (1)
       Excludes expenses in excess of a 1.05% contractual expense limitation in effect through
       4/30/11.
 (2)
       Total return reflects the rate that an investor would have earned on an investment in the fund
       during each period, assuming reinvestment of all distributions and payment of no redemption
       or account fees.
 (3)
       Annualized




The accompanying notes are an integral part of these financial statements.


                   12
   R Rowe Price Global Real Estate Fund
T. T.OWE PRICE GLOBAL REAL ESTATE FUND



FINANCIAL HIGHLIGHTS                                       For a share outstanding throughout each period
      F inancial H ighlights                                        For	a	share	outstanding	throughout	each	period



  Advisor Class
                                                                                       Year   10/27/08
                                                                                      Ended    Through
                                                                                            ‡          ‡
                                                                                    12/31/09 12/31/08
  NET ASSET VALUE
  Beginning of period                                                               $ 10.53           $ 10.00

  Investment activities
                                                                                                (1)               (1)
    Net investment income                                                                 0.26             0.06
    Net realized and unrealized gain                                                      3.16             0.73
    Total from investment activities                                                      3.42             0.79

  Distributions
    Net investment income                                                                 (0.33)           (0.05)
    Net realized gain                                                                     (0.19)           (0.19)
    Tax return of capital                                                                  –               (0.02)
    Total distributions                                                                   (0.52)           (0.26)

  NET ASSET VALUE
  End of period                                                                     $ 13.43           $ 10.53

  Ratios/Supplemental Data

  Total return(2)                                                                       33.46%(1) 7.89%(1)
                                                                                              (1)     (1)(3)
  Ratio of total expenses to average net assets                                          1.15% 1.15%
                                                                                                (1)           (1)(3)
  Ratio of net investment income to average net assets                                  2.40%         3.51%
  Portfolio turnover rate                                                               12.4%             0.3%
  Net assets, end of period
  (in thousands)                                                                    $     357         $    263

  ‡
        Per share amounts calculated using average shares outstanding method.
  (1)
        Excludes expenses in excess of a 1.15% contractual expense limitation in effect through
        4/30/11.
  (2)
        Total return reflects the rate that an investor would have earned on an investment in the fund
        during each period, assuming reinvestment of all distributions and payment of no redemption
        or account fees.
  (3)
        Annualized




   The accompanying notes are an integral part of these financial statements.
  The accompanying notes are an integral part of these financial statements.


                     13
T. Rowe Price Global Real Estate Fund
                                                             December 31, 2009
T. ROWE PRICE GLOBAL REAL ESTATE FUND
                                                                 December 31, 2009
                                          ‡
 P ortfolio of Investments
Portfolioof I nvestments ‡                              Shares
                                                        Shares             Value
                                                                            Value
 (Cost and value in $000s)
(Cost	and	value	in	$000s)


AUSTRALIA 9.9%

Common Stocks 9.9%
CFS Retail Property Trust, Equity Units                182,911               310
Commonwealth Property Office, Equity Units             246,094               213
GPT Group, Equity Units                                182,312                 98
Mirvac Group                                            64,005                 89
Stockland                                               82,684               290
Westfield Group                                         67,458               752

Total Australia (Cost $1,408)                                              1,752


BRAZIL 2.2%

Common Stocks 2.2%
Iguatemi Empresa de Shopping Centers                    10,900               212
Multiplan Empreendimentos                                9,300               173

Total Brazil (Cost $319)                                                     385


CANADA 4.1%

Common Stocks 4.1%
Allied Properties Real Estate Investment Trust, REIT    11,800               219
Brookfield Properties (USD)                             11,000               133
First Capital Reality                                    9,600               199
Primaris Retail Real Estate Investment Trust, REIT      11,300               174

Total Canada (Cost $599)                                                     725


CHINA 3.3%

Common Stocks 3.3%
Agile Property Holdings (HKD)                           52,000                 75
China Overseas Land & Investment (HKD)                  87,440               183
China Resources Land (HKD)                              88,000               199
Soho China (HKD)                                       255,500               138

Total China (Cost $513)                                                      595


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                    14
T. ROWE PRICE GLOBAL REAL ESTATE FUND
T. Rowe Price Global Real Estate Fund




                                               Shares
                                               Shares   Value
                                                         Value
(Cost	and	value	in	$000s)


FINLAND 1.3%

Common Stocks 1.3%
Citycon                                        53,529    225

Total Finland (Cost $103)                                225


FRANCE 4.8%

Common Stocks 4.8%
Unibail-Rodamco                                 3,918    862

Total France (Cost $594)                                 862


HONG KONG 13.3%

Common Stocks 13.3%
Hang Lung Properties                          172,000    672
Hongkong Land Holdings (USD)                   78,000    384
Kerry Properties                               29,000    146
Shangri-La Asia                                24,000      45
Sun Hung Kai Properties                        46,000    683
The Link Real Estate Investment Trust, REIT   103,000    261
Wharf Holdings                                 30,000    171

Total Hong Kong (Cost $1,375)                           2,362


JAPAN 8.5%

Common Stocks 8.5%
Aeon Mall                                      11,500    223
Mitsubishi Estate                              40,000    634
Mitsui Fudosan                                 32,000    537
NTT Urban Development                            178     118

Total Japan (Cost $1,602)                               1,512




                   15
T. ROWE PRICE GLOBAL REAL ESTATE FUND
T. Rowe Price Global Real Estate Fund




                                         Shares
                                         Shares   Value
                                                   Value
(Cost	and	value	in	$000s)


NETHERLANDS 1.4%

Common Stocks 1.4%
Corio                                     3,702    253

Total Netherlands (Cost $184)                      253


SINGAPORE 3.0%

Common Stocks 3.0%
Ascendas Real Estate Investment Trust   156,000    244
Capitamall Trust, REIT                  222,000    282

Total Singapore (Cost $384)                        526


SWEDEN 1.7%

Common Stocks 1.7%
Hufvudstaden, A shares                   39,911    302

Total Sweden (Cost $248)                           302


SWITZERLAND 1.6%

Common Stocks 1.6%
PSP Swiss Property                        5,011    284

Total Switzerland (Cost $240)                      284


UNITED KINGDOM 7.4%

Common Stocks 7.4%
Derwent London                            6,205    131
Great Portland Estates                   79,929    370
Hammerson                                54,979    373
Liberty International                    18,459    152
Shaftsbury                               44,249    281

Total United Kingdom (Cost $931)                  1,307




                   16
T. ROWE PRICE GLOBAL REAL ESTATE FUND
T. Rowe Price Global Real Estate Fund




                                                       Shares
                                                       Shares   Value
                                                                 Value
(Cost	and	value	in	$000s)


UNITED STATES 34.5%

Common Stocks 34.5%
Alexandria Real Estate Equities, REIT                   1,350      87
AMB Property, REIT                                     14,200    363
AvalonBay Communities, REIT                             4,766    391
Boston Properties, REIT                                 5,300    355
Douglas Emmett, REIT                                   17,700    252
Equity Residential, REIT                               10,300    348
Federal Realty Investment Trust, REIT                   5,700    386
Healthcare Realty Trust, REIT                           5,200    112
Kilroy Realty, REIT                                     7,300    224
Kimco Realty, REIT                                     17,400    235
Marriott International, Class A                         3,323      90
Orient-Express Hotels, Class A (1)                     12,900    131
Plum Creek Timber, REIT                                 4,200    159
Public Storage, REIT                                    4,100    334
Regency Centers, REIT                                   5,900    207
Saul Centers, REIT                                      6,400    210
Simon Property Group, REIT                             10,963    875
SL Green Realty, REIT                                   6,500    327
Starwood Hotels & Resorts Worldwide                     3,500    128
Starwood Property Trust, REIT                           9,500    179
Taubman Centers, REIT                                   8,600    309
Vornado Realty Trust, REIT                              5,851    409

Total United States (Cost $4,588)                               6,111


SHORT-TERM INVESTMENTS 2.1%

Money Market Funds 2.1%

T. Rowe Price Reserve Investment Fund, 0.25% (2)(3)   362,910    363

Total Short-Term Investments (Cost $363)                         363




                   17
T. ROWE PRICE GLOBAL REAL ESTATE FUND
T. Rowe Price Global Real Estate Fund




                                                                               Shares        Value
                                                                                              Value
(Cost	and	value	in	$000s)


Total Investments in Securities
99.1% of Net Assets (Cost $13,451)                                                      $   17,564

             ‡    Denominated in the currency of the country of incorporation unless
                  otherwise noted.
            (1)   Non-income producing
            (2)   Seven-day yield
            (3)   Affiliated Companies
          HKD     Hong Kong Dollar
          REIT    Real Estate Investment Trust
          USD     U.S. Dollar




                   18
T. Rowe Price Global Real Estate Fund




 Affiliated Companies
 ($000s)


 The fund may invest in certain securities that are considered affiliated companies. As defined
 by the 1940 Act, an affiliated company is one in which the fund owns 5% or more of the
 outstanding voting securities, or a company which is under common ownership or control.
 Based on the fund’s relative ownership, the following securities were considered affiliated
 companies for all or some portion of the year ended December 31, 2009. Purchase and sales
 cost and investment income reflect all activity for the period then ended.

                                     Purchase         Sales                Investment              Value
 Affiliate                               Cost          Cost                   Income        12/31/09     12/31/08
 T. Rowe Price Reserve
                                            ¤              ¤
 Investment Fund, 0.25%                                                $         1      $        363 $       130

 Totals                                                                $         1      $        363 $       130

   ¤ Purchase and sale information not shown for cash management funds.


 Amounts reflected on the accompanying financial statements include the following
 amounts related to affiliated companies:


 Investment in securities, at cost              $        363
     Dividend income                                        1
     Interest income                                               -
 Investment income                              $           1
 Realized gain (loss) on securities             $              -
 Capital gain distributions from
 mutual funds                                   $              -




The accompanying notes are an integral part of these financial statements.


                    19
T. Rowe Price Global Real Estate Fund
                                                                              December 31, 2009




 S tatement of A ssets and L iabilities
 ($000s, except shares and per share amounts)


        Assets
        Investments in securities, at value (cost $13,451)                     $      17,564
        Receivable for shares sold                                                       156
        Dividends and interest receivable                                                 59
        Cash                                                                              24
        Due from affiliates                                                               21
        Other assets                                                                      80
        Total assets                                                                  17,904


        Liabilities
        Payable for shares redeemed                                                       87
        Payable for investment securities purchased                                       34
        Due to affiliates                                                                 14
        Other liabilities                                                                 39
        Total liabilities                                                                174


        NET ASSETS                                                             $      17,730

        Net Assets Consist of:
        Undistributed net investment income                                    $          15
        Accumulated undistributed net realized loss                                     (486)
        Net unrealized gain                                                            4,113
        Paid-in capital applicable to 1,316,997 shares of $0.0001 par value
        capital stock outstanding; 1,000,000,000 shares authorized                    14,088


        NET ASSETS                                                             $      17,730

        NET ASSET VALUE PER SHARE

        Investor Class
        ($17,373,209 / 1,290,422 shares outstanding)                           $         13.46
        Advisor Class
        ($356,903 / 26,575 shares outstanding)                                 $         13.43




The accompanying notes are an integral part of these financial statements.


                   20
T. Rowe Price Global Real Estate Fund
   T. ROWE PRICE GLOBAL REAL ESTATE FUND



    STATEMENT O OPERATIONS
 S tatement ofOF perations
    ($000s)
 ($000s)


                                                                                                   Year
                                                                                                 Ended
                                                                                              12/31/09
         Investment Income (Loss)
         Dividend income (net of foreign taxes of $27)                                    $        391
         Expenses
           Investment management                                                                    82
           Shareholder servicing
             Investor Class                                                                         17
           Rule 12b-1 fees
             Advisor Class                                                                           1
           Prospectus and shareholder reports
             Investor Class                                                          14
             Advisor Class                                                            1             15
           Custody and accounting                                                                  225
           Registration                                                                            123
           Legal and audit                                                                          37
           Directors                                                                                 5
           Miscellaneous                                                                             7
           Reductions of fees and expenses
             Investment management fees waived                                                     (82)
             Expenses reimbursed by manager                                                       (308)
           Total expenses                                                                          122
         Net investment income                                                                     269

         Realized and Unrealized Gain (Loss)
         Net realized gain (loss)
           Securities                                                                              (20)
           Foreign currency transactions                                                            (5)
           Net realized loss                                                                       (25)
         Change in net unrealized gain on securities                                             3,545
         Net realized and unrealized gain                                                        3,520

         INCREASE IN NET ASSETS FROM OPERATIONS                                           $      3,789




The accompanying notes are an integral part of these financial statements.
        The accompanying notes are an integral part of these financial statements.

                   21
T. Rowe Price Global Real Estate Fund




 S tatement of C hanges in N et A ssets
 ($000s)

                                                                Year        10/27/08
                                                              Ended          Through
                                                           12/31/09         12/31/08
      Increase (Decrease) in Net Assets
      Operations
       Net investment income                           $         269    $         48
       Net realized gain (loss)                                  (25)             10
       Change in net unrealized gain                           3,545             568
       Increase in net assets from operations                  3,789             626

      Distributions to shareholders
        Net investment income
          Investor Class                                        (339)            (38)
          Advisor Class                                           (8)             (1)
        Net realized gain
          Investor Class                                        (237)           (141)
          Advisor Class                                           (5)             (5)
        Tax return of capital                                      –             (17)
           Decrease in net assets from distributions            (589)           (202)

      Capital share transactions*
        Shares sold
          Investor Class                                       8,267           7,940
          Advisor Class                                           22             250
        Distributions reinvested
          Investor Class                                        247               45
        Shares redeemed
          Investor Class                                      (2,586)            (86)
          Advisor Class                                           (1)              –
        Redemption fees received                                   7               1
        Increase in net assets from capital
        share transactions                                     5,956           8,150

      Net Assets
      Increase during period                                   9,156           8,574
      Beginning of period                                      8,574               –
      End of period                                    $     17,730     $      8,574

      Undistributed net investment income                         15              12




                  22
T. Rowe Price Global Real Estate Fund




 S tatement of C hanges in N et A ssets
 (000s)

                                                                                  Year    10/27/08
                                                                                Ended      Through
                                                                             12/31/09     12/31/08
       *Share information
         Shares sold
           Investor Class                                                         698          794
           Advisor Class                                                            2           25
         Distributions reinvested
           Investor Class                                                           20           4
         Shares redeemed
           Investor Class                                                         (217)         (9)
         Increase in shares outstanding                                            503         814




The accompanying notes are an integral part of these financial statements.


                   23
T. Rowe Price Global Real Estate Fund
                                                                      December 31, 2009




 N otes to F inancial S tatements


     T. Rowe Price Global Real Estate Fund, Inc (the fund), is registered under the
     Investment Company Act of 1940 (the 1940 Act) as a nondiversified, open-end
     management investment company. The fund seeks to provide long-term growth
     through a combination of capital appreciation and current income. The fund
     has two classes of shares: the Global Real Estate Fund original share class,
     referred to in this report as the Investor Class, offered since October 27, 2008,
     and the Global Real Estate Fund – Advisor Class (Advisor Class), offered since
     October 27, 2008. Advisor Class shares are sold only through unaffiliated
     brokers and other unaffiliated financial intermediaries that are compensated by
     the class for distribution, shareholder servicing, and/or certain administrative
     services under a Board-approved Rule 12b-1 plan. Each class has exclusive
     voting rights on matters related solely to that class; separate voting rights on
     matters that relate to both classes; and, in all other respects, the same rights
     and obligations as the other class.


NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
     Basis of Preparation The accompanying financial statements were prepared in
     accordance with accounting principles generally accepted in the United States of
     America (GAAP), which require the use of estimates made by fund management.
     Fund management believes that estimates and security valuations are appropri-
     ate; however, actual results may differ from those estimates, and the security
     valuations reflected in the accompanying financial statements may differ from
     the value ultimately realized upon sale of the securities. Further, fund manage-
     ment believes that no events have occurred between December 31, 2009, the
     date of this report, and February 25, 2010, the date of issuance of the financial
     statements, that require adjustment of, or disclosure in, the accompanying
     financial statements.
     Investment Transactions, Investment Income, and Distributions Income and
     expenses are recorded on the accrual basis. Dividends received from mutual
     fund investments are reflected as dividend income; capital gain distributions are
     reflected as realized gain/loss. Dividend income and capital gain distributions
     are recorded on the ex-dividend date. Income tax-related interest and penalties,
     if incurred, would be recorded as income tax expense. Investment transactions
     are accounted for on the trade date. Realized gains and losses are reported on




             24
T. Rowe Price Global Real Estate Fund




    the identified cost basis. Distributions to shareholders are recorded on the
    ex-dividend date. Income distributions are declared and paid by each class
    quarterly. Capital gain distributions, if any, are generally declared and paid by
    the fund, annually.
    Currency Translation Assets, including investments, and liabilities denominated
    in foreign currencies are translated into U.S. dollar values each day at the
    prevailing exchange rate, using the mean of the bid and asked prices of such
    currencies against U.S. dollars as quoted by a major bank. Purchases and sales
    of securities, income, and expenses are translated into U.S. dollars at the pre-
    vailing exchange rate on the date of the transaction. The effect of changes in
    foreign currency exchange rates on realized and unrealized security gains and
    losses is reflected as a component of security gains and losses.
    Class Accounting The Advisor Class pays distribution, shareholder servicing,
    and/or certain administrative expenses in the form of Rule 12b-1 fees, in an
    amount not exceeding 0.25% of the class’s average daily net assets. Shareholder
    servicing, prospectus, and shareholder report expenses incurred by each class
    are charged directly to the class to which they relate. Expenses common to both
    classes, investment income, and realized and unrealized gains and losses are
    allocated to the classes based upon the relative daily net assets of each class.
    Redemption Fees A 2% fee is assessed on redemptions of fund shares held for
    90 days or less to deter short-term trading and to protect the interests of long-
    term shareholders. Redemption fees are withheld from proceeds that share-
    holders receive from the sale or exchange of fund shares. The fees are paid to
    the fund and are recorded as an increase to paid-in capital. The fees may cause
    the redemption price per share to differ from the net asset value per share.
    New Accounting Pronouncement On January 1, 2009, the fund adopted new
    accounting guidance that requires enhanced disclosures about derivative and
    hedging activities, including how such activities are accounted for and their
    effect on financial position, performance, and cash flows. Adoption of this
    guidance had no impact on the fund’s net assets or results of operations.


NOTE 2 - VALUATION
    The fund’s investments are reported at fair value as defined under GAAP. The
    fund determines the values of its assets and liabilities and computes its net asset
    value per share at the close of the New York Stock Exchange (NYSE), normally
    4 p.m. ET, each day that the NYSE is open for business.


             25
T. Rowe Price Global Real Estate Fund




    Valuation Methods Equity securities listed or regularly traded on a securities
    exchange or in the over-the-counter (OTC) market are valued at the last quoted
    sale price or, for certain markets, the official closing price at the time the valu-
    ations are made, except for OTC Bulletin Board securities, which are valued at
    the mean of the latest bid and asked prices. A security that is listed or traded
    on more than one exchange is valued at the quotation on the exchange deter-
    mined to be the primary market for such security. Listed securities not traded
    on a particular day are valued at the mean of the latest bid and asked prices for
    domestic securities and the last quoted sale price for international securities.
    Investments in mutual funds are valued at the mutual fund’s closing net asset
    value per share on the day of valuation.
    Other investments, including restricted securities, and those financial instru-
    ments for which the above valuation procedures are inappropriate or are
    deemed not to reflect fair value are stated at fair value as determined in good
    faith by the T. Rowe Price Valuation Committee, established by the fund’s
    Board of Directors.
    For valuation purposes, the last quoted prices of non-U.S. equity securities may
    be adjusted under the circumstances described below. If the fund determines
    that developments between the close of a foreign market and the close of the
    NYSE will, in its judgment, materially affect the value of some or all of its port-
    folio securities, the fund will adjust the previous closing prices to reflect what
    it believes to be the fair value of the securities as of the close of the NYSE. In
    deciding whether it is necessary to adjust closing prices to reflect fair value, the
    fund reviews a variety of factors, including developments in foreign markets,
    the performance of U.S. securities markets, and the performance of instruments
    trading in U.S. markets that represent foreign securities and baskets of foreign
    securities. A fund may also fair value securities in other situations, such as
    when a particular foreign market is closed but the fund is open. The fund uses
    outside pricing services to provide it with closing prices and information to
    evaluate and/or adjust those prices. The fund cannot predict how often it will
    use closing prices and how often it will determine it necessary to adjust those
    prices to reflect fair value. As a means of evaluating its security valuation pro-
    cess, the fund routinely compares closing prices, the next day’s opening prices
    in the same markets, and adjusted prices.




             26
T. Rowe Price Global Real Estate Fund




    Valuation Inputs Various inputs are used to determine the value of the fund’s
    financial instruments. These inputs are summarized in the three broad levels
    listed below:
    Level 1 – quoted prices in active markets for identical securities
    Level 2 – observable inputs other than Level 1 quoted prices (including, but not
              limited to, quoted prices for similar securities, interest rates, prepay-
              ment speeds, and credit risk)
    Level 3 – unobservable inputs
    Observable inputs are those based on market data obtained from sources inde-
    pendent of the fund, and unobservable inputs reflect the fund’s own assumptions
    based on the best information available. The input levels are not necessarily an
    indication of the risk or liquidity associated with financial instruments at that
    level. For example, non-U.S. equity securities actively traded in foreign markets
    generally are reflected in Level 2 despite the availability of closing prices because
    the fund evaluates and determines whether those closing prices reflect fair value
    at the close of the NYSE or require adjustment, as described above. The follow-
    ing table summarizes the fund’s financial instruments, based on the inputs used
    to determine their values on December 31, 2009:

    ($000s)                           Level 1         Level 2          Level 3   Total Value
                                                  Significant      Significant
                                      Quoted      Observable     Unobservable
                                       Prices         Inputs           Inputs
    Investments in Securities,
    except:                      $          —$        10,365 $              —$       10,365
     Canada                               133            592                —           725
     United States                      6,111              —                —         6,111
    Short-Term Investments                363              —                —           363

    Total                        $      6,607 $       10,957 $              —$       17,564



NOTE 3 - OTHER INVESTMENT TRANSACTIONS
    Purchases and sales of portfolio securities other than short-term securi-
    ties aggregated $6,878,000 and $1,380,000, respectively, for the year ended
    December 31, 2009.



              27
T. Rowe Price Global Real Estate Fund




NOTE 4 - FEDERAL INCOME TAxES
    No provision for federal income taxes is required since the fund intends to con-
    tinue to qualify as a regulated investment company under Subchapter M of the
    Internal Revenue Code and distribute to shareholders all of its taxable income
    and gains. Distributions determined in accordance with federal income tax
    regulations may differ in amount or character from net investment income and
    realized gains for financial reporting purposes. Financial reporting records are
    adjusted for permanent book/tax differences to reflect tax character but are not
    adjusted for temporary differences.
    The fund files U.S. federal, state, and local tax returns as required. The fund’s
    tax returns are subject to examination by the relevant tax authorities until
    expiration of the applicable statute of limitations, which is generally three years
    after filing of the tax return but could be longer in certain circumstances.
    Reclassifications between income and gain relate primarily to the character of
    dividends received from REIT investment. For the year ended December 31,
    2009, the following reclassifications were recorded to reflect tax character; there
    was no impact on results of operations or net assets:

    ($000s)


    Undistributed	net	investment	income	                                       $	           81
    Undistributed	net	realized	gain	                                           	           (81)

    Distributions during the years ended December 31, 2009 and December 31,
    2008 were characterized for tax purposes as follows:

    ($000s)
                                                                  December 31
                                                          2009                      2008
    Ordinary income                                	 $	          589      $                171
    Long-term capital gain                                        —      	 	                14
    Return	of	capital                                             —                         17


    Total distributions                            	 $	          589      $                202




              28
T. Rowe Price Global Real Estate Fund




    At December 31, 2009, the tax-basis cost of investments and components of net
    assets were as follows:

    ($000s)

    Cost	of	investments	                                              $	      14,076

    Unrealized	appreciation		                                         $	       3,648
    Unrealized depreciation                                                     (160)
    Net	unrealized	appreciation	(depreciation)	                       	        3,488
    Undistributed	ordinary	income	                                    	         124
    Undistributed	long-term	capital	gain	                             	           15
    REIT	income	deferrals	                                            	           15
    Paid-in	capital	                                                  	       14,088

    Net	assets	                                                       $	      17,730


    The difference between book-basis and tax-basis net unrealized appreciation
    (depreciation) is attributable to the deferral of losses from wash sales and the
    realization of unrealized gains/losses on passive foreign investment companies
    for tax purposes. Certain dividends declared by real estate investment trusts
    (REITs) in December and paid the following January are recognized for tax pur-
    poses in the subsequent year (REIT income deferrals), but for financial reporting
    purposes are included in the fund’s dividend income on ex-date.


NOTE 5 - FOREIGN TAxES
    The fund is subject to foreign income taxes imposed by certain countries in
    which it invests. Acquisition of certain foreign currencies related to security
    transactions are also subject to tax. Additionally, capital gains realized by the
    fund upon disposition of securities issued in or by certain foreign countries are
    subject to capital gains tax imposed by those countries. All taxes are computed
    in accordance with the applicable foreign tax law, and, to the extent permit-
    ted, capital losses are used to offset capital gains. Tax expense attributable to
    income is accrued by the fund as a reduction of income. Taxes incurred on the
    purchase of foreign currencies are recorded as realized loss on foreign currency
    transactions. Current and deferred tax expense attributable to net capital gains
    is reflected as a component of realized and/or change in unrealized gain/loss on
    securities in the accompanying financial statements. At December 31, 2009,
    the fund had no deferred tax liability attributable to foreign securities and no
    foreign capital loss carryforwards.

               29
T. Rowe Price Global Real Estate Fund




NOTE 6 - RELATED PARTY TRANSACTIONS
    The fund is managed by T. Rowe Price Associates, Inc. (the manager or Price
    Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The invest-
    ment management agreement between the fund and the manager provides for an
    annual investment management fee, which is computed daily and paid monthly.
    The fee consists of an individual fund fee, equal to 0.40% of the fund’s average
    daily net assets, and a group fee. The group fee rate is calculated based on the
    combined net assets of certain mutual funds sponsored by Price Associates (the
    group) applied to a graduated fee schedule, with rates ranging from 0.48% for
    the first $1 billion of assets to 0.285% for assets in excess of $220 billion. The
    fund’s group fee is determined by applying the group fee rate to the fund’s aver-
    age daily net assets. At December 31, 2009, the effective annual group fee rate
    was 0.30%.
    The Investor Class and Advisor Class are also subject to a contractual expense
    limitation through the limitation dates indicated in the table below. During the
    limitation period, the manager is required to waive its management fee and/
    or reimburse expenses, excluding interest, taxes, brokerage commissions, and
    extraordinary expenses, that would otherwise cause the class’s ratio of annual-
    ized total expenses to average net assets (expense ratio) to exceed its expense
    limitation. For a period of three years after the date of any reimbursement or
    waiver, each class is required to repay the manager for expenses previously
    reimbursed and management fees waived to the extent the class’s net assets
    have grown or expenses have declined sufficiently to allow repayment without
    causing the class’s expense ratio to exceed its expense limitation.

                                               Investor Class           Advisor Class

    Expense	Limitation	               	               1.05%	    	              1.15%
    Limitation Date                            April 30, 2011           April 30, 2011

    Pursuant to this agreement, management fees in the amount of $82,000 were
    waived and expenses in the amount of $308,000 were reimbursed by the
    manager during the year ended December 31, 2009. Including these amounts,
    management fees waived and expenses previously reimbursed by the manager
    in the amount of $438,000 remain subject to repayment at December 31, 2009.
    In addition, the fund has entered into service agreements with Price Associates
    and two wholly owned subsidiaries of Price Associates (collectively, Price).
    Price Associates computes the daily share prices and provides certain other



              30
T. Rowe Price Global Real Estate Fund




    administrative services to the fund. T. Rowe Price Services, Inc., provides
    shareholder and administrative services in its capacity as the fund’s transfer
    and dividend disbursing agent. T. Rowe Price Retirement Plan Services, Inc.,
    provides subaccounting and recordkeeping services for certain retirement
    accounts invested in the Investor Class. For the year ended December 31,
    2009, expenses incurred pursuant to these service agreements were $186,000
    for Price Associates and $13,000 for T. Rowe Price Services, Inc. The total
    amount payable at period-end pursuant to these service agreements is reflected
    as Due to Affiliates in the accompanying financial statements.
    The fund may invest in the T. Rowe Price Reserve Investment Fund and the
    T. Rowe Price Government Reserve Investment Fund (collectively, the T. Rowe
    Price Reserve Investment Funds), open-end management investment companies
    managed by Price Associates and considered affiliates of the fund. The T. Rowe
    Price Reserve Investment Funds are offered as cash management options to
    mutual funds, trusts, and other accounts managed by Price Associates and/or its
    affiliates and are not available for direct purchase by members of the public. The
    T. Rowe Price Reserve Investment Funds pay no investment management fees.
    As of December 31, 2009, T. Rowe Price Group, Inc., and/or its wholly owned
    subsidiaries owned 575,000 shares of the Investor Class, and 25,000 shares of
    the Advisor class, representing 46% of the fund’s net assets.




            31
T. Rowe Price Global Real Estate Fund




 R eport of I ndependent R egistered P ublic A ccounting F irm


To the Board of Directors and Shareholders of
T. Rowe Price Global Real Estate Fund, Inc.
     In our opinion, the accompanying statement of assets and liabilities, including
     the schedule of investments, and the related statements of operations and of
     changes in net assets and the financial highlights present fairly, in all material
     respects, the financial position of T. Rowe Price Global Real Estate Fund, Inc.
     (the “Fund”) at December 31, 2009, the results of its operations for the year
     then ended, the changes in its net assets and the financial highlights for each
     of the fiscal periods presented, in conformity with accounting principles
     generally accepted in the United States of America. These financial statements
     and financial highlights (hereafter referred to as “financial statements”) are the
     responsibility of the Fund’s management; our responsibility is to express an
     opinion on these financial statements based on our audits. We conducted our
     audits of these financial statements in accordance with the standards of the
     Public Company Accounting Oversight Board (United States). Those standards
     require that we plan and perform the audit to obtain reasonable assurance
     about whether the financial statements are free of material misstatement. An
     audit includes examining, on a test basis, evidence supporting the amounts
     and disclosures in the financial statements, assessing the accounting principles
     used and significant estimates made by management, and evaluating the overall
     financial statement presentation. We believe that our audits, which included
     confirmation of securities at December 31, 2009 by correspondence with the
     custodian, and confirmation of the underlying fund by correspondence with
     the transfer agent, provide a reasonable basis for our opinion.



     PricewaterhouseCoopers LLP
     Baltimore, Maryland
     February 25, 2010




              32
T. Rowe Price Global Real Estate Fund




 T ax I nformation (U naudited ) for the T ax Y ear E nded 12/31/09

  We	are	providing	this	information	as	required	by	the	Internal	Revenue	Code.	The	amounts	
  shown may differ from those elsewhere in this report because of differences between tax
  and financial reporting requirements.

  The	fund’s	distributions	to	shareholders	included	$324,000	from	short-term	capital	gains.

  For	taxable	non-corporate	shareholders,	$102,000	of	the	fund’s	income	represents	quali-
  fied	dividend	income	subject	to	the	15%	rate	category.

  The	fund	will	pass	through	foreign	source	income	of	$246,000	and	foreign	taxes	paid	
  of $27,000.



 I nformation on P roxy V oting P olicies, P rocedures, and R ecords

  A	description	of	the	policies	and	procedures	used	by	T.	Rowe	Price	funds	and	portfolios	
  to determine how to vote proxies relating to portfolio securities is available in each fund’s
  Statement	of	Additional	Information,	which	you	may	request	by	calling	1-800-225-5132	or	
  by	accessing	the	SEC’s	Web	site,	www.sec.gov.	The	description	of	our	proxy	voting	policies	
  and procedures is also available on our Web site, www.troweprice.com. To access it, click
  on	the	words	“Our	Company”	at	the	top	of	our	corporate	homepage.	Then,	when	the	next	
  page appears, click on the words “Proxy Voting Policies” on the left side of the page.

  Each fund’s most recent annual proxy voting record is available on our Web site and
  through	the	SEC’s	Web	site.	To	access	it	through	our	Web	site,	follow	the	directions	above,	
  then	click	on	the	words	“Proxy	Voting	Records”	on	the	right	side	of	the	Proxy	Voting	
  Policies page.


 H ow to O btain Q uarterly P ortfolio H oldings

  The fund files a complete schedule of portfolio holdings with the Securities and Exchange
  Commission	for	the	first	and	third	quarters	of	each	fiscal	year	on	Form	N-Q.	The	fund’s	
  Form	N-Q	is	available	electronically	on	the	SEC’s	Web	site	(www.sec.gov);	hard	copies	
  may	be	reviewed	and	copied	at	the	SEC’s	Public	Reference	Room,	450	Fifth	St.	N.W.,	
  Washington,	DC	20549.	For	more	information	on	the	Public	Reference	Room,	call	
  1-800-SEC-0330.	




               33
T. Rowe Price Global Real Estate Fund




 A bout the F und’s D irectors and O fficers


Your fund is governed by a Board of Directors (Board) that meets regularly to review a wide variety of
matters affecting the fund, including performance, investment programs, compliance matters, advi-
sory fees and expenses, service providers, and other business affairs. The Board elects the fund’s
officers,	who	are	listed	in	the	final	table.	At	least	75%	of	Board	members	are	independent	of	T.	Rowe	
Price	Associates,	Inc.	(T.	Rowe	Price),	and	T.	Rowe	Price	International,	Inc.	(T.	Rowe	Price	International);	
“inside”	or	“interested”	directors	are	employees	or	officers	of	T.	Rowe	Price.	The	business	address	
of each director and officer is 100 East Pratt Street, Baltimore, Maryland 21202. The Statement of
Additional Information includes additional information about the directors and is available without
charge	by	calling	a	T.	Rowe	Price	representative	at	1-800-225-5132.


 Independent Directors
 Name
 (Year of Birth)                  Principal Occupation(s) During Past Five Years and Directorships of
 Year Elected*                    Other Public Companies
 William	R.	Brody,	M.D.,	Ph.D. President and Trustee, Salk Institute for Biological Studies (2009 to
 (1944)                        present);	Director,	Novartis,	Inc.	(2009	to	present);	Director,	IBM	
 2009                          (2007 to present); President and Trustee, Johns Hopkins University
                               (1996	to	2009);	Chairman	of	Executive	Committee	and	Trustee,	
                               Johns Hopkins Health System (1996 to 2009)
 Jeremiah	E.	Casey                Director,	National	Life	Insurance	(2001	to	2005);	Director,	The	Rouse	
 (1940)                           Company,	real	estate	developers	(1990	to	2004)
 2008
 Anthony W. Deering               Chairman,	Exeter	Capital,	LLC,	a	private	investment	firm	(2004	to	
 (1945)                           present);	Director,	Under	Armour	(2008	to	present);	Director,	Vornado	
 2008                             Real	Estate	Investment	Trust	(2004	to	present);	Director,	Mercantile	
                                  Bankshares (2002 to 2007); Member, Advisory Board, Deutsche
                                  Bank	North	America	(2004	to	present);	Director,	Chairman	of	the	
                                  Board,	and	Chief	Executive	Officer,	The	Rouse	Company,	real	estate	
                                  developers	(1997	to	2004)
 Donald W. Dick, Jr.              Principal,	EuroCapital	Advisors,	LLC,	an	acquisition	and	management	
 (1943)                           advisory	firm	(1995	to	present)
 2008
 Karen	N.	Horn                    Director,	Eli	Lilly	and	Company	(1987	to	present);	Director,	Simon	
 (1943)                           Property	Group	(2004	to	present);	Director,	Norfolk	Southern	(2008	
 2008                             to	present);	Director,	Georgia	Pacific	(2004	to	2005)
 Theo	C.	Rodgers                  President,	A&R	Development	Corporation	(1977	to	present)
 (1941)
 2008

  E
 *	 ach	independent	director	oversees	124	T.	Rowe	Price	portfolios	and	serves	until	retirement,	resignation,	or	
  election of a successor.




                   34
T. Rowe Price Global Real Estate Fund




 Independent Directors (continued)
 Name
 (Year of Birth)                    Principal Occupation(s) During Past Five Years and Directorships of
 Year Elected*                      Other Public Companies
 John	G.	Schreiber                  Owner/President,	Centaur	Capital	Partners,	Inc.,	a	real	estate	invest-
 (1946)                             ment	company	(1991	to	present);	Partner,	Blackstone	Real	Estate	
 2008                               Advisors, L.P. (1992 to present)
 Mark	R.	Tercek                     President	and	Chief	Executive	Officer,	The	Nature	Conservancy	(2008	
 (1957)                             to	present);	Managing	Director,	The	Goldman	Sachs	Group,	Inc.	
 2009                               (1984	to	2008)

  E
 *	 ach	independent	director	oversees	124	T.	Rowe	Price	portfolios	and	serves	until	retirement,	resignation,	or	
  election of a successor.



 Inside Directors
 Name
 (Year of Birth)
 Year Elected*
 [Number of T. Rowe Price           Principal Occupation(s) During Past Five Years and Directorships of
 Portfolios Overseen]               Other Public Companies
 Edward	C.	Bernard                  Director	and	Vice	President,	T.	Rowe	Price;	Vice	Chairman	of	the	
 (1956)                             Board,	Director,	and	Vice	President,	T.	Rowe	Price	Group,	Inc.;	
 2008                               Chairman	of	the	Board,	Director,	and	President,	T.	Rowe	Price	
 [124]                              Investment	Services,	Inc.;	Chairman	of	the	Board	and	Director,	
                                    T.	Rowe	Price	Global	Asset	Management	Limited,	T.	Rowe	Price	
                                    Global	Investment	Services	Limited,	T.	Rowe	Price	Retirement	
                                    Plan	Services,	Inc.,	T.	Rowe	Price	Savings	Bank,	and	T.	Rowe	Price	
                                    Services,	Inc.;	Director,	T.	Rowe	Price	International,	Inc.;	Chief
                                    Executive	Officer,	Chairman	of	the	Board,	Director,	and	President,	
                                    T.	Rowe	Price	Trust	Company;	Chairman	of	the	Board,	all	funds
 Brian	C.	Rogers,	CFA,	CIC          Chief	Investment	Officer,	Director,	and	Vice	President,	T.	Rowe	Price;	
 (1955)                             Chairman	of	the	Board,	Chief	Investment	Officer,	Director,	and	Vice	
 2008                               President,	T.	Rowe	Price	Group,	Inc.;	Vice	President,	T.	Rowe	Price	
 [69]                               Trust	Company

  E
 *	 ach	inside	director	serves	until	retirement,	resignation,	or	election	of	a	successor.




                   35
T. Rowe Price Global Real Estate Fund




 Officers
 Name (Year of Birth)
 Position Held With Global Real
 Estate Fund                                               Principal Occupation(s)
 Roger	L.	Fiery	III,	CPA	(1959)                            Vice	President,	T.	Rowe	Price,	T.	Rowe	Price	
 Vice President                                            Group,	Inc.,	T.	Rowe	Price	International,	Inc.,	
                                                           and	T.	Rowe	Price	Trust	Company
 John	R.	Gilner	(1961)                                     Chief	Compliance	Officer	and	Vice	President,	
 Chief	Compliance	Officer                                  T.	Rowe	Price;	Vice	President,	T.	Rowe	Price	
                                                           Group,	Inc.,	and	T.	Rowe	Price	Investment	
                                                           Services, Inc.
 Gregory	S.	Golczewski	(1966)                              Vice	President,	T.	Rowe	Price	and	T.	Rowe	Price	
 Vice President                                            Trust	Company
 Gregory	K.	Hinkle,	CPA	(1958)                             Vice	President,	T.	Rowe	Price,	T.	Rowe	Price	
 Treasurer                                                 Group,	Inc.,	and	T.	Rowe	Price	Trust	Company;	
                                                           formerly	Partner,	PricewaterhouseCoopers	LLP	
                                                           (to 2007)
 Nina	P.	Jones,	CPA	(1980)                                 Employee,	T.	Rowe	Price;	formerly	intern,	
 Vice President                                            T.	Rowe	Price	(summer	2007);	Senior	Associate,	
                                                           KPMG	LLP;	student,	Columbia	Business	School
 Yoichiro Kai (1973)                                       Vice	President,	T.	Rowe	Price	Global	Investment	
 Vice President                                            Services	Limited;	formerly	Japanese	Financial/
                                                           Real	Estate	Sector	Analyst/Portfolio	Manager,	
                                                           Citadel	Investment	Group,	Asia	Limited	(to	
                                                           2009);	Research	Analyst,	Japanese	Equities	
                                                           and	Sector	Fund	Portfolio	Manager,	Fidelity	
                                                           Investments Japan Limited (to 2007)
 David	M.	Lee,	CFA	(1962)                                  Vice	President,	T.	Rowe	Price	and	T.	Rowe	Price	
 President                                                 Group,	Inc.
 Patricia	B.	Lippert	(1953)                                Assistant	Vice	President,	T.	Rowe	Price	and	
 Secretary                                                 T.	Rowe	Price	Investment	Services,	Inc.
 Robert	J.	Marcotte	(1962)                                 Vice	President,	T.	Rowe	Price	and	T.	Rowe	Price	
 Vice President                                            Group,	Inc.
 Raymond	A.	Mills,	Ph.D.,	CFA	(1960)                       Vice	President,	T.	Rowe	Price,	T.	Rowe	Price	
 Vice President                                            Group,	Inc.,	T.	Rowe	Price	International,	Inc.,	
                                                           and	T.	Rowe	Price	Trust	Company

 Unless	otherwise	noted,	officers	have	been	employees	of	T.	Rowe	Price	or	T.	Rowe	Price	International	for	at	least	
 five years.




                   36
T. Rowe Price Global Real Estate Fund




 Officers (continued)
 Name (Year of Birth)
 Position Held With Global Real
 Estate Fund                                               Principal Occupation(s)
 Eric	C.	Moffett	(1974)                                    Vice	President,	T.	Rowe	Price	Group,	Inc.,	and	
 Vice President                                            T.	Rowe	Price	International,	Inc.;	formerly	
                                                           Analyst,	Fayez	Sarofim	&	Company	(to	2007)
 Philip	A.	Nestico	(1976)                                  Vice	President,	T.	Rowe	Price	and	T.	Rowe	Price	
 Vice President                                            Group,	Inc.
 David Oestreicher (1967)                                  Director	and	Vice	President,	T.	Rowe	Price	
 Vice President                                            Investment	Services,	Inc.,	T.	Rowe	Price	Trust	
                                                           Company,	and	T.	Rowe	Price	Services,	Inc.;	Vice	
                                                           President,	T.	Rowe	Price,	T.	Rowe	Price	Global	
                                                           Asset	Management	Limited,	T.	Rowe	Price	
                                                           Global	Investment	Services	Limited,	T.	Rowe	
                                                           Price	Group,	Inc.,	T.	Rowe	Price	International,	
                                                           Inc.,	and	T.	Rowe	Price	Retirement	Plan	
                                                           Services, Inc.
 Deborah D. Seidel (1962)                                  Vice	President,	T.	Rowe	Price,	T.	Rowe	Price	
 Vice President                                            Investment	Services,	Inc.,	and	T.	Rowe	Price	
                                                           Services, Inc.
 Julie L. Waples (1970)                                    Vice	President,	T.	Rowe	Price
 Vice President
 Marta Yago (1977)                                         Vice	President,	T.	Rowe	Price	International,	Inc.;	
 Vice President                                            formerly	student,	Columbia	Business	School	(to	
                                                           2007);	Senior	Associate,	Fixed	Income	Division,	
                                                           Citigroup	Investment	Banking	(to	2005)

 Unless	otherwise	noted,	officers	have	been	employees	of	T.	Rowe	Price	or	T.	Rowe	Price	International	for	at	least	
 five years.




                   37
T. Rowe Price Mutual Funds
This page contains supplementary information that is not part of the shareholder report.
STOCK FUNDS                            ASSET ALLOCATION FUNDS (cont.) MONEY MARKET FUNDS
Domestic                               Retirement 2025 *                       Taxable
Blue Chip Growth*                      Retirement 2030 *                       Prime Reserve
Capital Appreciation*                  Retirement 2035 *                       Summit Cash Reserves
Capital Opportunity*                   Retirement 2040 *                       U.S. Treasury Money
Diversified Mid-Cap Growth             Retirement 2045 *
                                                                               Tax-Free
Diversified Small-Cap Growth           Retirement 2050 *
Dividend Growth*                       Retirement 2055 *                       California Tax-Free Money
Equity Income*                         Retirement Income *                     Maryland Tax-Free Money
Equity Index 500                                                               New York Tax-Free Money
Extended Equity Market Index           BOND FUNDS                              Summit Municipal Money Market
Financial Services                                                             Tax-Exempt Money
Growth & Income                        Domestic Taxable
Growth Stock*                          Corporate Income                        INTERNATIONAL/GLOBAL
Health Sciences                        GNMA                                    FUNDS
Media & Telecommunications             High Yield*
Mid-Cap Growth*                        Inflation Protected Bond                Stock
Mid-Cap Value*                         New Income *                            Africa & Middle East
New America Growth*                    Short-Term Bond *                       Emerging Europe & Mediterranean
New Era                                Spectrum Income                         Emerging Markets Stock
New Horizons                           Strategic Income *                      European Stock
Real Estate*                           Summit GNMA                             Global Infrastructure*
Science & Technology*                  U.S. Bond Index                         Global Large-Cap Stock *
Small-Cap Stock*                       U.S. Treasury Intermediate              Global Real Estate*
Small-Cap Value*                       U.S. Treasury Long-Term                 Global Stock *
Spectrum Growth                        Domestic Tax-Free                       Global Technology
Tax-Efficient Equity                                                           International Discovery
Total Equity Market Index              California Tax-Free Bond                International Equity Index
U.S. Large-Cap Core*                   Georgia Tax-Free Bond                   International Growth & Income *
Value*                                 Maryland Short-Term                     International Stock*
                                         Tax-Free Bond                         Japan
ASSET ALLOCATION FUNDS                 Maryland Tax-Free Bond                  Latin America
                                       New Jersey Tax-Free Bond                New Asia
Balanced                               New York Tax-Free Bond                  Overseas Stock
Personal Strategy Balanced             Summit Municipal Income                 Spectrum International
Personal Strategy Growth               Summit Municipal Intermediate
Personal Strategy Income               Tax-Free High Yield                     Bond
Retirement 2005*                       Tax-Free Income *                       Emerging Markets Bond
Retirement 2010*                       Tax-Free Short-Intermediate             International Bond *
Retirement 2015*                       Virginia Tax-Free Bond
Retirement 2020*

For more information about T. Rowe Price funds or services, please contact us directly at
1-800-225-5132. Request a prospectus or summary prospectus; each includes investment objectives,
risks, fees, expenses, and other information that you should read and consider carefully before investing.**
Investments in the money market funds are not insured or guaranteed by the FDIC or any other
government agency. Although the funds seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in the funds.
 * T.	Rowe	Price	Advisor	and	R	Classes	may	be	available	for	these	funds.	T.	Rowe	Price	Advisor	and	R	Classes	are	
   offered	only	through	financial	intermediaries.	For	more	information	about	T.	Rowe	Price	Advisor	and	R	Classes,	
   contact	your	financial	professional	or	call	T.	Rowe	Price	at	1-877-804-2315.
** Summary prospectuses are not currently available for all funds.


                                                    T.	Rowe	Price	Investment	Services,	Inc.	
                                                    100 East Pratt Street
                                                    Baltimore, MD 21202
92539                                                                                                F173-050 2/10

								
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