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What is with the LPT sector today?

Discussion in 'Real Estate Investment Trusts (A-REIT / LPT)' started by crc_error, 17th Dec, 2007.

  1. crc_error

    crc_error The Rule of 72

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    Its down 6.4% at open!

    Did I miss some news over the weekend?

    {edit down 7% now, isn't this a crash!!}
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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  3. crc_error

    crc_error The Rule of 72

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    seems like this global credit crisis is getting worse..

    perhaps its now time to reduce market exposure? Things aren't looking to rosy in the short term.
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I'm certainly staying away from listed property for now ... difficult to tell what will happen to the broader market.
     
  5. Tropo

    Tropo Well-Known Member

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    You should have been considering that some time ago...:rolleyes:
    Yep....things do not look rosy even in the close term (IMHO):cool:
     
  6. crc_error

    crc_error The Rule of 72

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    Yeh, but this looks like it could start hitting other markets.. not just LPT's.
     
  7. Tropo

    Tropo Well-Known Member

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    Possibly...
    :cool:
     
  8. lorrimer

    lorrimer Well-Known Member

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    I fail to see how a company like Centro can lose 3/4 of it's value overnight. If that isn't a crash, I don't know what is. Surely it can't fall much further!
    Property is supposed to be a fairly safe investment isn't it?
    I got caught up in the tech wreck and thought I'd never go near speculative investment's again.
    Now this.
     
  9. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    The listed property sector has changed somewhat in recent years - there is more competition for funds and there has been more appetite for risk in our low inflation / low interest rate environment.

    Many LPTs have increased their internal gearing ratio dramatically over recent years - something which a lot of people don't realise!

    In many cases, commercial property has evolved from a safe income producing investment to a high risk growth investment.

    ... and some have been caught with their pants down:

    Local LPT investors are latest victims of US subprime crisis | theage.com.au

     
  10. crc_error

    crc_error The Rule of 72

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    -8.3% at present..

    sheeze!
     
  11. DaveA

    DaveA Well-Known Member

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    well what about centro(CNP)? Its down 69% from fridays price.. (market cap 1.5b)

    Centro Retail (CER) is down 42%... (market cap 1.9b)

    Surely one of the big property players id going to take it out. For the assets they hold it would be fantastic for a restructuring opportunity....
     
  12. Tropo

    Tropo Well-Known Member

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    “Surely it can't fall much further!”

    Are you sure ??? Can you tell where the bottom is?

    "Property is supposed to be a fairly safe investment isn't it?"

    Every investment carries some degree of risk. You always need to control your risks.

    I got caught up in the tech wreck and thought I'd never go near speculative investment's again.

    It depends what do you call speculative investment.
    :cool:
     
  13. crc_error

    crc_error The Rule of 72

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    down 10% now.. while all ords down 3%

    Is this a stock market crash?
     
  14. Tropo

    Tropo Well-Known Member

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    Not yet !;)

    NOTE - Do not worry...At $0 you'll get value for money :p
     
  15. crc_error

    crc_error The Rule of 72

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    yeh well we can thank the stupid yanks for all this crap..

    And they try to tell us Suddam was a terrioust and a threat to the world!

    They have just killed the whole worlds financial markets!!! looks like the big crash is coming.. look out 2008!

    LPT index down 11% All ords down 3.2%.. we are dropping worse than the DOW
     
  16. voigtstr

    voigtstr Well-Known Member

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    So ING is looking good for savings through to the end of 2008. Can someone yell out if they think they've picked the bottom of the market please :).
     
  17. Apocalypto

    Apocalypto Member

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    Relax :), it ain't dead yet.
     
  18. crc_error

    crc_error The Rule of 72

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    hehehe but with my gearing at present, I will be dead soon! I recon I will be in buffer in a few days once the units reflect what happened today..

    Lucky my portfilio only has 10% exposure to LPT.. as I have diversified over the last year or so to other sectors..

    but either way, everything is been hit..
     
  19. coopranos

    coopranos Well-Known Member

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    We arent even anywhere near the lows of a few months ago yet!
    how high are you gearing!!
     
  20. tropic

    tropic Well-Known Member

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    Well, I decided it was a good time to buy Centro (CNP) this morning. So I did and paid 1.85. I was hoping for a short term hold like a day.
    Now I hope I get my money back. Down $26% in one day.
    High return high risk I quess.