What's in the News, page-1403

Found the following info from a Fool article in Jul 22. Only posting as this info coming from Wilsons, not Fool.

Given the recent pounding in the SP reckon a takeover is looming for NextDC.

REITs set for a stunning comeback. Inflation is still running rampant and the US Federal Reserve is set to deliver super-sized rate increases in the coming months. The Reserve Bank of Australia is sure to follow, in order to fix Australia’s own inflation and not devalue the local dollar excessively against the greenback.Despite this prospect, Wilsons head of investment strategy David Cassidy feels real estate shares could turn it around soon.“We tend to believe the REIT sector’s underperformance should be coming to an end given that bond yields have started to stabilise, market focus will shift to the defensive aspects of REITs, [and] valuations are generally supportive.”He said in a Wilsons memo that high inflation could ironically benefit landlords, if rents rise faster than financing and labour costs.“This would result in greater top-line revenue, which may in turn be reflected in higher cash flows.”Cassidy warned, though, that REITs with genuine pricing power are the ones providing space in “in-demand, fast-growing sectors, such as distribution warehouses, data centres, and life science facilities”.“These specialty sectors will likely exhibit the most significant pricing power, which will still give them an attractive growth profile relative to traditional sectors like office and retail,” he said