While noting that some areas have fared better than others—withNorth America having its share of difficulties—the 76-page reportshows the global REIT market growing against all key indices,including market capitalization, volume of trading and total ratesof return. Singapore led the 14 other countries in the averagetotal rates of return (capital and income) with an astounding 72.9%result, well ahead of the 42.6% posted by the next closest, SouthKorea. Japan was third at 42.4%. The UK, which just adopted REITs,was last at 10.8%, just behind the 11.8% recorded by US REITs.

As illustrated in the total return index, Asia has enjoyed asolid 12 months, registering strongly enough to be termed byE&T "the new REIT tiger." Asian countries reviewed by E&Yalso include Hong Kong and Malaysia. Led by 41 REITs in Japan, Asianow has 83 such vehicles, up from 75 a year earlier. Theconglomeration of Europe, the Middle East and Africa saw thelargest increase of REITs, rising from 59 to 102, but that wassomewhat skewed by inclusion of the 29 UK and Turkey REITs for thefirst time. Only the US saw a decrease in REITs, falling sharplyfrom 253 to 195. That is still well ahead of the second placefinisher, Australia at 58.

An accommodating regulatory environment is a big reasonSingapore has emerged as the best performer of 2007, according toE&Y. Not only was total rate of return up from a paltry 1.7%recorded in 2006, Singapore boosted the number of REITs from 11 to16, enabling the total volume of trade to reach $11 billion from $4billion in 2006. "Given the strong total return performance, it isnot surprising to see the premium of market price to net assetsjump up from 10.9% to 71.1%" in Singapore, relays the E&Yreport, which was co-authored by E&Y professionals Ed Psaltisand Stephen Chubb, both headquartered in Australia.