Pat, that is one of  the great unknowns in any investment.  While appreciation does affect the liquidation value of the investment (that explains the attractiveness of owning professional sports teams), there should also be an annual return.  Like individual investments in real estate, REIT's tend to appreciate/depreciate and have an annual ROI.

That brings me back to the big question.  How much is a reasonable expectation on a well-chosen real estate investment?  And, how does one go about advising an investor considering REIT's and other equities as an alternative to real estate?  My own answer is that I don't know.