Chairman's message: observations from Ron Shelton, CAPS.

OUR INDUSTRY, like most others, continues to focus on income and expenses and the economy overall. We're concerned not only what will happen tomorrow, but next year and beyond.

One of the most valuable tools that NM provides its member is the annual Survey of Operating Income & Expenses for Rental Apartment Properties. The executive summary and several tables based on national data are featured in this issue of units.

The survey, conducted by CEL & Associates, includes budgeting information from thousands of companies, covering more than 900,000 units. Most importantly, the survey is broken down by region and individual market. The complete survey will be available by Oct. 1.

Meanwhile, this executive summary, which begins on page 61, explains how during this transformational year of bailouts, stimulus programs, deficit spending and financial industry restructuring, in addition to a dramatic decline of home and stock ownership and values, rising unemployment and bankruptcies, the U.S. apartment industry continues to face many short-term challenges.

CEL reports that "in the face of a prolonged recession, rising cost of living, tax increases, declining rents and a significant decline in both transactional volume and asset values, the apartment industry is placing an even great emphasis on operational basics and performance metrics."

CEL goes on to report that that the turmoil created by economic uncertainty has "raised the bar" within the apartment industry for increased focus on operations. Asset and property management skills and experience are now more of a priority than ever before, as the apartment industry focuses on offensive and defensive actions to control the financial bottom line of property and portfolio operations.

I'd like to thank those who participated in the survey and would encourage NAA members to use the survey when building their companies' 2010 operating budgets.

This finance-based issue of units also covers many apartment specific topics such as receivership management opportunities in distressed properties (see "Managing Distressed Properties," page 34); the abundance of high-quality, low-cost deals available to owners and investors flush with cash (see "Special Offer," page 38); development trends (see "If You Build It, Will They Come," page 44) and best practices for financing repositioning projects (see "Financing the Facelift," page 50), as well as financing development (see "Dipping a Toe in the Securitization Pool," page 54).

This issue also includes a recap and additional photos from our highly successful 2009 NAA Education Conference & Exposition, on page 76. There, we presented an insightful panel discussion featuring several prominent CEOs. Their thoughts about the future of the apartment industry are summarized on page 57 in "Path to Recovery."

I hope this issue of units provides the information you need to help you improve your businesses and get a strong head start in participating in what hopes to be a rapid economic recovery.

--NAA Chairman of the Board Ron Shelton, CAPS