amazing, page-12

I doubt very much that it will recover to even near NTA at least in the very short term. However if CER is anything to go by a positive result should see a large spike. Maybe to 40 or 50 cents which, if it holds, will be a nice initial result.

Will be interesting. I recall another REU writer (can't remember who) saying that it is possible REU will cut the distribution to reduce debt. Maybe this will also influence SP reaction. As recently as 11/12/07 REU confirmed expected distribution for calender 2008 of 10.1 cents per unit. If this guidance is confirmed then that will be another big positive.

I am struggling to see anything seriously wrong with REU to be honest. OK, there are certain risks most of which related to leverage, however:

* No debt is maturing in the 2008 calender year;
* The 8 properties are 99% occupied;
* To quote REU on their CRE portfolio "All loans in the portfolio continue to perform and no specific provision for impairment has been made"

Sure, there will be some non-cash items in the accounts. But I'm more interested in the operating cash flow. I expect this to be positive and healthy.

Of interest, the current yields on debt should, in theory, allow REU to purchase more debt instruments at even healthier yields than they have in the past. There could just be a positive in this for them down the track.

MJS