yes peak rates, just look at the movement in inflation, and remember by definition inflation is a constant increment in prices. If prices are high but level off that is zero inflation.I don't expect zero inflation, but the marginal rate of inflation will decline. We saw peak fear of rates from Sept-Oct, this fear has settled down, hence the decline in 10yr bonds.NPR still trading at 55% of book value, and the assets are high quality bunnings warehouse assets. I expect NTA to decline as CAP rates continue to rise, but with the 10yr bonds settling back down, I expect a write down (increase in cap rates) for Dec half, and maybe another in June year end. But that will be it.With such a discount to NTA I have some margin of safety.By FY25 (18 months away) I expect RBA rates to be down to 3% (a reduction of 130 basis points). Once this occurs people will be chasing yield.Property REITS on 6% yields will look comparatively 'good'.I hold NPR as part of a diversified REIT portfolio.
NPR Price at posting:
$1.02 Sentiment: None Disclosure: Held