Ann: Portfolio valuation update, page-5

I would of thought valuations are about 20% - 25% overs currently. The problem really sits in the gearing ratios. Most instituational investors have pre deternined benchmarks for the gearing ratios and are not allowed to invest where it reaches above say 40%. I would argue majority of REITs are comfortably above this threshold hence if instituational investors flee, we could see all sorts of trouble. For example Centuria bonds were one level away from junk bond status when I last looked.

if debt costs and yeilds blow out by another point, things should/could get spicey. I would imagine the risk of this happening is why these REITS are being sold down