The analysts state they can survice a further 100bpts drop in values
Tell me how many other REITS worldwide have greater leverage than this? Heaps
Cashflow is king, the REITS have this, the banks rely on this for interest plus excessive margins to make money.
Long term leased assets provide some security?
Current SP reflects discounts never seen before to NTA. In fact if you read the Orbis Funds Australia report (they are accumulating REITS) The Sp represents a price well below replacement level of the buildings let alone the land
Gloom is king now, however with patience all the worlds efforts and stimulus package will have apositive effect over time.
THE US is considering relaxing the mark to market rules.
Westfields etc still thrive, the non-cash losses in exchange losses, derivatices and loss in value are book entries.
Remember these REITS have fooled everyone by doing cpital raisings if the world is going to end.
Governments including the Aust Govt will collapse as the people that caused this crisis (ratings agencies) are rerating even governments to negative credit watch.
Today's drop is because China did not announce a trillion dollar bailout, as they claim they are on target to grow at 8.00% with only domestic economy.
General Motors may declare bankruptcy.
Therfore all of the properties that GPT & GMG own in Australia are now worthless?? Give me a break.
Panic has set in and despondency rules. This is a sign we are nearing or at the bottom.
The BoE dropped rates yesterday by 0.50% the ECB dropped rates by 0.50%.
GMG and GPT are better off by 0.50% for any UK or Euro debt or have I missed something
I know you all think I am a d,, head but for those of you that have money think about the opportunities you have at the moment.
Laugh if you want, but I do still think that shopping centres, business parks and real estate are required. Sooner or later the economy will pick up.
Japan is in a mess because they did nothing for ten years, the US , Australia, UK , China and Europe are acting quickly to avoid deflation and perhaps a depression.
All of tyhe stimulus packages are still to start in the main, patience is required.
GMG Price at posting:
16.8¢ Sentiment: Hold Disclosure: Held
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