steering clear from lpt's, page-40

Good afternoon cajx..

I think there definitely is merit to your hypothesis, however I think it is a short term problem.
If you start to see real property find a bottom, you will see professional investors return to the sector and you will find trusts moving back to their intrinsic yield and NTA based values.

The reason I think this is that property will have to show signs of finding a base before you start to see trust prices increase (normally the market moves before the phyisical stock but I think it will be the other way around in this cycle, seeing so many people have had their fingers so badly burnt). Also I think risk averse investors will be happier buying into bricks and mortar as there is less volatility there.

Once investors see property finding a bottom I think they will be quick to jump on REITS etc that are simple to understand, have a solid diversified portfolios and potentially some cash to benefit from acuisitions. I think this is where you may see some mergers and takeovers.

I think you may see a sharp increase toward intrinsic value followed by a long period of trading sideways whilst people begin to get some divs again.

All of the above is just my view and yet again cajx I agree with you..