Well, yes, he did actually say that a large part of the reason...

Well, yes, he did actually say that a large part of the reason why he doesn't like REITs is because they carry property on their books, and thus are generally valued, at a value above what the properties could reasonably be expected to sell at.

But if you're familiar with Buffett's philosophies (which you're clearly not), you'd also be familiar with the concepts of:

- The importance of growth on retained earnings (as another poster has already mentioned) which cannot be achieved by REITs because they pay out 90%+ of their earnings;
- Candid management;
- A business that has some form of "moat" or unfair advantage which allows it to constantly grow earnings with minimal capital outlay;
- The difference between a "cigar butt" investment and a company that can constantly grow earnings;
- His dislike of businesses that constantly issue new capital at a discount, which Centro have a track record, and which they will have to do to survive;
- The fact that the best businesses don't actually need high levels of leverage to attain above-average returns on equity.

If Berkshire Hathaway looked at Centro for even one second, that to me would be proof positive that Buffett has dementia and has forgotten all the principles that have allowed him to make 23% per year for 40+ years.