Just read in Orbis's Dec 31 2008 quarterly report that it has...

Just read in Orbis's Dec 31 2008 quarterly report that it has stakes in various REITs including Valad.

Orbis says the current REIT sector sp level (except for some large players)-generally around 7-10% of NTA represents unprecedented long-term investment opportunities.

It's like investing in a AUD1mln property with AUD70k annual rental return. The property has got mortgage of AUD570k and need equity of AUD430k and interest expense of AUD35k.

Equity is now offered at AUD30-40k, which is unprecedented, as REIT sector has traditionally been viewed generating stable income.


Hence, whilst there might be substantial short-term market moves, investment in such REITs does present very lucrative earnings and capital gain potential in the long run-while not too long given their current oversold position.