Ann: Response to Media Article, page-10

"If the above is the case, then why is Mr Market not agreeing. Now we can just say that Mr Market is just being a bit senile. But sometimes Mr Market is actually correct and I am wrong, I am just not appreciating the full display of information.
So then I thought about the REIT sector. Few are trading at their NTA with many trading anywhere from 15-40% below NTA.
If this is the case, then to compare apples with apples a discount should be applied to the NTA before adding for the funds management business.
If this methodology is applied then one sees a current 'apples with apples' value approximating the current share price give or take."

Yeah, nargh...that thinking doesn't accord with me.

I invest on absolute value grounds, not on the basis of relativities: if something is cheap compared to my assessed intrinsic value, I want to own it; how other look-a-likes are priced is not relevant. Why, the market could be getting them all wrong at that point in time.

Mr Market has form in mispricing whole sectors at a time (in fact, it does that kind of thing more often than not!)

As for your reservations about the gearing of the various funds, sure 50% isn't 10% but it also isn't 80%. While 20% or 30% is unnecessarily conservative, and sub-optimal, I'd only raise an eyebrow with anything above 70%.

So 50% is a level at which I still sleep easy, especially given the nature of the underlying assets. Testimony to this is the fact that the asset base came through Covid and the associated lockdowns, without becoming distressed.

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