ANCHOR, OFF-CAMERA (ENGLISH) SAYING:

What do you see from your vantage point in terms of opportunities in that sector (housing) and where would you put the recovery?

KEITH HALL, MANAGING PARTNER, KBS CAPITAL ADVISORS (ENGLISH) SAYING:

Well first I should differentiate between the listed publically traded REIT versus the nonlisted, we call them private REITS that are out there. They are both public companies subject to the SEC but their measurements are different. If you look at the publically traded sector, it more acts as a bond. Investors are chasing yield because they are not getting it in fixed income, they're not getting it in the treasury market, they're not getting it in CDs. They're looking to it for dividends in the stock market, they're also looking at it through REITs and as such they've driven the prices up. The amount of value that is part of the returns in REITs today does not reflect the value of the underlying real estate where in a nontraded REIT the share price changes once a year and it has to be expressed in the absolute value of the real estate not the stock. So it's truly a different measure. The difference you see is more in the dividend and the distribution. The publically traded sector they trade around three and a half, three point 6 percent. The non traded space its 6-7%.

ANCHOR, OFF-CAMERA (ENGLISH) SAYING:

So are your dividends increasing?

KEITH HALL, MANAGING PARTNER, KBS CAPITAL ADVISORS (ENGLISH) SAYING:

No, we keep them flat. We are a REIT, you are required to pay out 90% of your distributable income so we keep a flat level income stream and if there's extra cash from an operation you pay it out in a 13th dividend.

ANCHOR, OFF-CAMERA (ENGLISH) SAYING:

So what are you doing with your cash in terms of opportunities, whats interesting, where specifically in the real estate market are you finding some value?

KEITH HALL, MANAGING PARTNER, KBS CAPITAL ADVISORS (ENGLISH) SAYING:

You'll find that sponsors are very specific to what sector they invest in. A healthcare REIT is just healthcare, an office REIT is office. Its based on your expertise. We are kind of interesting because we're a hybrid REIT. We invest on the equity side in office and industrial and we make loans. We're actually a lender too. We do have another REIT that participates in the multi-family recovery, we have a multi-family REIT and we have a third product which is unique to the space because we don't pay a dividend, it's a total return product that focuses on distressed debt.