Felsmad, I'll be the first to admit that no-one can predict what...

Felsmad, I'll be the first to admit that no-one can predict what will "actually" happen in time, but I am willing to hold (and trade occasionally!) for the following reasons.

1. FKP still valued well under their NTA value - actually about 40% below.

2. The residential housing sector of the property market is already bubbling with home prices rising substantially in virtually all areas.

3. Consecutive RBA rate rises confirms that rising prices are not just a spike.

4. RBA rate rises trying to stem/control the upward surge now underway in our economy

5. Instos will eventually appreciate that in FY2010 the asset writedowns in the property sector will probably not be repeated anywhere near the extent of 2009, if at all.

6. On realising this, the gap to NTA's will close rapidly as instos will start to value the AREIT sector on values much further out than just 1 year.

7. Initially, stocks in that sector with consistently strong and stable recurring income and low debt/gearing will be the safest and most attractive to the Instos.

8. The retail side will then follow the institutional investment flow.

9. Insto funds will then start to gradually flow to the more speculative higher return property development stocks.

10. Then, a few years on from now, we will probably see another blowup in the property sector as the cycle begins again but the stocks with strong recurring income streams and low debt will fare much better than the high risk highly leveraged more speculative developers.

That's all good news for FKP/SGP/WDC etc. providing you have more than a short term investment perspective.

Summing up, within the next 12 months or so I'd expect FKP to be testing the $1.60- $1.70 area - providing the global economy continues rebuilding along the current path!!!