Thanks for those points above.I can't remember where I saved...

Thanks for those points above.

I can't remember where I saved this below from but its interesting.

Any thoughts,

talktome



March 23rd 2009

GPT Property Trust. One of Australia’s oldest property trusts, GPT Group, has been hit hard by the deterioration in credit and real estate market conditions. In February it posted a net loss of $3.25 billion for the year to December 31, 2008, compared with a profit of $1.18 billion a year earlier, on revenue up from $783 million to $1.05 billion.

GPT has been trying to sell up to $2.5 billion in assets and, according to one stock picker, is yet to make much progress in that department. The company needs cash to reduce its debt but until that happens there is little chance of the stock outperforming.

There are significant concerns with regard to debts associated with its $6 billion global joint venture with defunct investment firm Babcock & Brown and it may also be forced to pay up to $600 million to prominent Melbourne retail family, the Besens.

According to media reports the family has until March 30 to take up a put option to offload its 50% stake in GPT’s Highpoint Shopping Centre. One publication says that if the put option is based on the 2006 acquisition price of $621.2 million, it could lift GPT's gearing ratio from 33.7% to 37%.

With such a dramatic turnaround in fortunes it’s no wonder that investors have deserted the stock of late; GPT shares hit an intraday record low of 25.5¢ on March 6 and are currently trading at around 29¢.

One stock picker says that even if the group is able to resolve its debt and liquidity issues any share price boost will only be short-term because the sheer scale of the problems facing this A-REIT is likely to limit any sustained performance. With commercial property values still falling and potential buyers for its assets becoming scarce, investors are advised to avoid GPT shares.