Building a Portfolio? Try Industrial REITs; Bear Stearns' REIT Analyst Releases a New Report on Industrial Properties.

Business Editors

New York, New York--(BUSINESS WIRE)--Nov. 13, 2000

Calling it a "key ingredient" in the new economy, Bear Stearns REIT analyst Ross Smotrich pointed to industrial REITs as a solid option for investors hoping to build their portfolios. "If there is one property type that we believe will benefit from the structural changes currently talking place in the economy - namely the ways goods are produced, stored and distributed - it is well-located, well-conceived industrial real estate," said Smotrich, a Bear Stearns managing director. According to the analyst's latest report, changes in supply chain management and wholesale distribution, facilitated by technology and enhanced by e-commerce, imply growing demand for good industrial space. "Industrial real estate is a necessity in the new economy. Simply put, they are the bricks needed to help the clicks succeed," commented Smotrich.

In addition to the changing economy, Smotrich believes industrial real estate is also supported by inherent characteristics that make it a positive alternative for investors. "Industrial real estate is resilient, less prone to over-building and favored by institutional investors for its consistent returns and relatively modest capital expenditure requirements," said the Bear Stearns analyst.

Smotrich believes there are several REITs that will capitalize on these changes in the economy and on solid growth prospects. The Bear Stearns analyst rates AMB Property Corp. (NYSE:AMB) Buy and Keystone Property Trust (AMEX:KTR) and Pacific Gulf Properties (NYSE:PAG) Attractive.

For more information or to speak with Ross Smotrich, members of the press should call Carrie Hilton at [phone] or Michelle O'Brien at [phone].

Founded in 1923, Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). With approximately $24.6 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers global clearing services to broker dealers, prime broker clients and other professional traders, including securities lending. Headquartered in New York City, the company has more than 10,800 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, San Francisco and San Juan; and an international presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Seoul, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit our Web site at http://www.bearstearns.com.

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