from legg mason's december report

Profile
OVERWEIGHT POSITIONS ACTIVE %
Valad Property Group +4.4
Dexus Property Group +4.3
Macquarie Office Trust +4.0
Macquarie CountryWide Trust +3.5
Macquarie Infrastructure Group +3.0

Outlook
A-REITs underperformed the broader Australian equity market over
the past year. However, we are cognisant of the fact that A-REITs
have significantly reduced debt levels and refocused on traditional
property rental streams. We believe that these significant structural
improvements have favourably positioned A-REITs, particularly
against their unlisted peers. As a result, the sector is poised to
produce strong returns that are uncorrelated to the equity market.
We continue to observe a valuation spread of around four times
higher than normal between our fund and the market. The bid for
Challenger Kenedix Japan highlights the latent value that exists in
the portfolio. We expect to produce above normal portfolio returns
and are optimistic about the portfolios medium term return
prospects.

more info @

http://www.leggmason.com.au/en/product/detail/M0010AU_detail.aspx