this one's a keeper, page-57

Hi Superk,

I agree that on any analytical table comparing REITs, BJT sticks out like the dog's bollocks as value for money.

Of course there may be reasons why it is priced so low relative to earnings, distributions, NTA etc etc.

From the article I posted about macro level economics in Japan it would certainly appear that they have a huge hurdle to overcome in revitalising their domestic economy.

I think the main point of the article was that for years private Japanese have been huge net savers and many of them have invested domestically with Government bonds, etc. The Govt has been spending up a storm trying to get the economy cranking, but to-date have not been very successful. Now, with demographics against them, and an aging Japanese population now having to start progressively spending their life savings to pay the bills as they retire, the problem becomes where is the Japanese Govt going to get money for its spending programme? Not likely from offshore with such low interest rates. Thus the cycle begins... higher interest rates to get money... higher cost on business... more subdued domestic economy... etc, etc

All big picture stuff and I'm not sure how far out you need to look into this when factoring in specific ST/ MT risk factors for BJT.

Some other, non company specific turn-offs for Australian investors could include:

1) B&B name and history
2) Japan assets are not Australian assets
3) All media says stay away from REITs

For more informed investors the turn-offs could also encompass:

4) Large MQG holding that is being sold down
5) Uncertainty of hedge positions that will (most likely) be closed in August
6) Waiting to see how much asset values have fallen and vacancies risen in latest quarterly report.

IMO however, the world will not end and already here in NZ and in Oz, it appears we are on the way back to the surface. The rest of the Western World will follow at some point behind us.

BJT offers a ST opportunity to get yourself set in a high distributing investment for years ahead:

But with all investments, risk (real or perceived) is commenserate with reward.

Cheers
John