COHEN & STEERS
Realty Majors [SM]
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[logo] Defined Asset Funds [Registered]
Buy with Knowledge - Hold With Confidence
The Realty Majors [SM] Portfolio June 30, 2000
The Realty Majors Portfolio
The Equity Investor Fund Cohen & Steers Realty Majors [SM] Portfolio is a
Defined Asset Fund [Registered] with investments in many of the leading Real
Estate Investment Trusts ("REITs") in the U.S. The Portfolio is broadly
diversified by both geographic region and property type and is designed to
provide a total investment return from both current income and the potential
for capital appreciation.
Investment Overview
The Cohen & Steers Realty Majors Portfolio enjoyed strong relative and absolute
performance in the second quarter and for the first half of the year. Its focus
on the nation's leading real estate companies enabled it to outperform the
major stock market averages as well as general real estate benchmarks.
Investors sought relief from the significant volatility in technology stocks
and turned toward the stability, income and attractive valuations offered by
REITs. In addition, many REITs surprised Wall Street analysts with better than
expected earnings growth. Looking forward, Cohen & Steers believes the
environment for REITs remains very positive. Demand for space continues to
exceed supply in most major markets, driving occupancy rates, rental income and
property values higher. Meanwhile, new construction activity has begun to
decline dramatically. They would also expect that the high and secure dividend
yields that REITs offer should become more attractive to investors as the
likelihood of further tightening by the Fed diminishes.
Realty Majors in the News
Second Quarter 2000
CarrAmerica Realty, Crescent Real Estate Equities, Duke-Weeks Realty, Highwoods
Properties, Mack-Cali Realty and Vornado Realty Trust established the Office
Technology Consortium. The Consortium will create an on-line procurement
exchange, designed to lower landlord and tenant operating costs, and an on-line
leasing exchange.
<PAGE>
CarrAmerica Realty agreed to sell a 65% joint venture interest in over $420
million of office properties, land and buildings under development.
Crescent Real Estate Equities agreed to issue to GMAC Commercial Mortgage
Corporation up to $275 million preferred securities in a partnership to which
Crescent contributed certain office properties. Proceeds will be used to
repurchase common stock under Crescent's $500 million share repurchase program.
Duke-Weeks Realty sold $129 million of office and industrial assets in the
second quarter, bringing 2000 dispositions to $278 million and providing
capital for higher return developments.
Equity Office Properties Trust sold a 49.9% interest in the Bank of America
Tower in Seattle for $210 million to the New York State Common Retirement Fund.
The company also made a $75 million investment in HQ Global Workplaces (a
partner company of FrontLine Capital Group), the largest executive office
suites provider in the U.S.
Highwoods Properties entered into a joint venture with a German investment fund
for existing and to-be-developed properties valued at $117 million.
Mack-Cali Realty agreed to buy Prentiss Properties Trust, a NYSE-listed REIT,
for $2.3 billion in stock and assumed debt in a transaction that will increase
Mack-Cali's holdings to 48 million square feet of office space.
Reckson Associates completed the last phase of the sale of its New Jersey
industrial portfolio to Keystone Property Trust, bringing total proceeds to
$310 million.
Kimco Realty, through its interests in its private Kimco Income REIT, agreed to
acquire 15 shopping centers worth approximately $206 million from Phillips
International Realty in a transaction that will facilitate the liquidation of
the NYSE-listed REIT.
Post Properties announced two key technology investments to provide improved
service to its residents, including Javalon, a web based property management
system, and Darwin Networks, a high speed internet access provider.
The Rouse Company announced plans to develop several regional malls over the
next four years. Sites include Cincinnati, Nashville, San Antonio, Minneapolis,
Louisville, as well as a major expansion in Las Vegas.
Simon Property Group formed a broadband initiative, MerchantWired.com, along
with five leading regional mall REITs including Rouse, Macerich and Taubman.
MerchantWired will offer high-speed telecommunications and Internet access to
retail tenants in 380 regional malls.
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<PAGE>
First quarter 2000 Funds from Operations (cash flow) growth averaged 9.6% for
the companies in the Realty Majors Portfolio.
Geographic Diversification as of 6/30/00
[A chart in the form of the map of the U.S. indicates the proportions of the
Portfolio's investments in various geographic locations, as follows:
6% North West Central
20% Pacific
8% Mountain
10% South West Central
15% North East Central
3% New England
17% Mid-Atlantic
19% South Atlantic
2% South East Central]
Portfolio Highlights as of 6/30/00
Symbol RMP001
Number of Holdings 27
Total Net Assets $340 million
NAV per Unit $0.86759
Termination Date April, 2001
Investment Consultant Cohen & Steers Capital Management
Total Returns(*)
Past performance is no guarantee of future returns.
ONE YEAR ANNUALIZED
SECOND 6/30/99- SINCE
QUARTER 6/30/00 4/23/98
Reality Majors
Portfolio 11.0% 5.4% 0.6%
Dow Jones
REIT Index(+) 10.7% -5.4% -6.8%
S&P REIT(++)
Index 10.4% 1.6% -5.3%
DJIA(+) -4.0% -3.3% 8.0%
S&P 500 Index(+) -2.7% 7.3% 14.2%
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<PAGE>
(*) Change in stock prices plus dividends reinvested divided by initial price.
The Portfolio reflects deduction of ongoing expenses of .348 annually. While
most holders purchased units without any sales charge, a 2% sales charge (not
reflected in these figures) is currently deducted on secondary market
purchases.
(+) The Dow Jones Equity REIT Total Return Index reflects both price changes
and dividend payouts of 118 equity REIT stocks. The S&P REIT Index is a
capitalization-weighted index of 100 REIT stocks. The Dow Jones Industrial
Average is a price-weighted index of 30 large-cap common stocks chosen as
representative of American industry. The S&P 500 Stock Price Composite Index
(S&P 500 Index) is a capitalization weighted index of 500 large-cap common
stocks. The names "Dow Jones Industrial Average" and "Dow Jones REIT Index" are
the property of Dow Jones & Company, Inc. "S&P REIT Index" and "S&P 500 Index"
are trademarks of The McGraw-Hill Companies, Inc.
Dividend Review
Twenty-four of the Realty Majors increased their dividends by an average 21.2%
since the inception of the Fund (see reverse for details).
Dividends are paid monthly or can be reinvested in additional units of the
Fund.
Sector Diversification as of 6/30/00
[A pie chart indicates sector diversification of the Portfolio's investments,
as follows:
5% Shopping Center
12% Regional Mall
1% Self Storage
9% Office/Industrial
14% Industrial
24% Apartment
5% Services & Technology
4% Health Care
26% Office]
Dividend Changes Since Inception - 4/23/98 through 6/30/00 Twenty-four
companies have announced dividend increases averaging 21.2% (since inception).
New % Change
Company Dividend Since 4/23/98
Public Storage, Inc. $1.50(++) 70.5%
Crescent Real Estate Equities Co. 2.20 44.7
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<PAGE>
Kimco Realty Corp. 2.64 37.5
AvalonBay Communities, Inc. 2.24 33.3
Equity Office Properties Trust 1.68 31.3
Duke-Weeks Realty Corp. 1.56 30.0
Reckson Associates Realty Corp. 1.54 23.5
Spieker Properties, Inc. 2.80 22.8
Vornado Realty Trust 1.92 20.0
The Rouse Company 1.32 17.9
ProLogis Trust 1.34 17.5
First Industrial Realty Trust, Inc. 2.48 17.0
Post Properties, Inc. 3.04 16.9
Mack-Cali Realty Corp. 2.32 16.0
Manufactured Home Communities, Inc. 1.66 14.5
Health Care Property Investors, Inc. 2.92 14.1
Equity Residential Properties Trust 3.04 13.4
Archstone Communities Trust 1.54 13.2
The Macerich Company 2.04 10.9
Arden Realty, Inc. 1.86 10.7
Developers Diversified Realty Corp. 1.44 9.9
Nationwide Health Properties, Inc. 1.84 9.5
Highwoods Properties, Inc. 2.22 8.8
Taubman Centers, Inc. 0.98 4.3
The Realty Majors Portfolio as of 6/30/00
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<PAGE>
<TABLE>
Company Symbol Price Per Annual Current Market Cap. Property
Share Dividend Dividend ($ in Sector
Yield(ss) Millions)
<S> <C> <C> <C> <C> <C> <C>
Archstone Communities
Trust ASN $21.063 $1.54 7.3% $2,932 Apartment
Arden Realty, Inc. ARI 23.500 1.86 7.9 1,488 Office
AvalonBay Communities,
Inc. AVB 41.750 2.24 5.4 2,763 Apartment
CarrAmerica Realty Corp. CRE 26.500 1.85 7.0 1,776 Office
Crescent Real Estate
Equities Co. CEI 20.500 2.20 10.7 2,399 Office
Developers Diversified
Realty Corp. DDR 14.938 1.44 9.6 918 Retail
Duke-Weeks Realty Corp. DRE 22.375 1.56 7.0 2,830 Office/Industrial
Equity Office Properties
Trust EOP 27.563 1.68 6.1 8,217 Office
Equity Residential
Properties Trust EQR 46.000 3.04 6.6 5,896 Apartment
First Industrial Realty
Trust, Inc. FR 29.500 2.48 8.4 1,143 Industrial
Frontline Capital Group(ll) FLCG 21.310 0.00 0.0 513 Services
Health Care Property
Investors, Inc. HCP 27.250 2.92 10.7 1,393 Health Care
Highwoods Properties, Inc. HIW 24.000 2.22 9.3 1,429 Office
Kimco Realty Corp. KIM 41.000 2.64 6.4 2,495 Retail
The Macerich Company MAC 22.063 2.04 9.2 753 Retail
Mack-Cali Realty Corp. CLI 25.688 2.32 9.0 1,508 Office
Manufactured Home
Communities, Inc. MHC 23.938 1.66 6.9 529 Manufactured Homes
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<PAGE>
Nationwide Health
Properties, Inc. NHP 13.938 1.84 13.2 644 Health Care
Post Properties, Inc. PPS 44.000 3.04 6.9 1,730 Apartment
ProLogis Trust PLD 21.313 1.34 6.3 3,463 Industrial
Public Storage, Inc. PSA 23.438 1.50(++) 6.4 2,939 Self Storage
Reckson Associates Realty
Corp. RA 25.438 1.54 5.9 1,070 Office/Industrial
The Rouse Company RSE 24.750 1.32 5.3 1,738 Retail
Simon Property Group, Inc. SPG 22.188 2.02 9.1 3,782 Retail
Spieker Properties, Inc. SPK 46.000 2.80 6.1 2,999 Office/Industrial
Taubman Centers, Inc. TCO 11.000 0.98 8.9 579 Retail
Vornado Realty Trust VNO 34.750 1.92 5.5 3,007 Office
</TABLE>
(++) Includes $0.62 per share special dividend declared in November 1999.
(ss) Calculated by annualizing the latest quarterly or semi-annual ordinary
dividend declared and dividing the result by its market value as of the close
of trading on June 30, 2000.
(ll) Formally known as Reckson Services Industries, Inc. Reckson Services
Industries, Inc. was spun off from Reckson Associates Realty Corp. in June
1998.
The Fund is subject to special risk considerations similar to those associated
with the direct ownership of real estate due to its policy of concentration in
the securities of real estate companies. Real estate valuations may be subject
to factors such as changing general and local economic, financial, competitive
and environmental conditions.
70137IN - 7/00
COHEN & STEERS
Realty Majors [SM]
[logo] Merrill Lynch
[logo] Defined Asset Funds [Registered]
Buy with Knowledge - Hold With Confidence
7
