i luv reits, page-21

interesting thread as for the risk to reits of going broke during the great depression companys going broke were around 1.3% per annum so as long as one spreads there risk there is not to much downside and if there are inflationalry pressures in 2010 and going forward the Reits shold be largely inflation proofed, due to replacement cost appreciating at similar rates to inflation so better than putting money in the bank as
the govt guarantee for deposits will become a govt guarantee that deposits get eroded as the retail rate dives and inflation takes a grip
At the same time REITs should be able to refy at lower rates as the valocity of money through the banking system accelerates which in turn will push up property values

Looking at cap rates on a 1 year time frame may be a little short sited unfortunately we are in uncharted waters so the conservative approach seems to apply