Discussion in 'Real Estate Investment Trusts (A-REIT / LPT)' started by Simon Hampel, 30th Jul, 2008.
Inside Business - 27/07/2008: Credit crunch hits property trusts hard
Inside Business - 27-Jul-2008
now i like my REiTs , and just like the horrible pre-GFC peaks , they appeal as an alternative to term deposits and fixed interest securities , BUT some sort of easy credit reduction must be due soon ,
some REIT's have kept the gearing ( and/or leverage ) to 40% and below
should investors start calculating top-up targets , or stop-loss prices . ??
some interesting opportunities ( in a low-yield world ) emerging now
keep in mind the risk
i will be watching to see what the cancelled/ soon to be re-floated WALE looks like in raw figures
i will be looking for it to substitute for a fixed interest rate note/hybrid.
The company I work for rotated into AREITS post GFC, up to a maximum weighting of 30% in our flagship 'growth' diversified fund! Since 2016, we have been rotating out and are currently quite bearish about the asset class. They aren't as bad as pre-GFC, but in our view, they are deteriorating on multiple fronts, including M&A activity.
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