why is reu sooooo cheap, page-6

As a holder of REU, it's been an interesting ride the last 4 months.

The credit concerns coupled with rising $A I think are the catalyst for this. Other property trusts not associated with Rubicon have also had their share prices hit.

I see Allco's takeover as a positive move for the 3 Rubicon funds and puts a merger of the 3 funds a step close which would also be a positive move.

The buyback will be interesting. See if it moves the share price upwards.

I've got on REU at 90c and 76c and don't see much downside exposure with the price around 76-80c current trading range.

REU could really only go significantly lower if for some reason the dividend was to be cut, changing the yield ratio.

From all accounts that's not going to happen. Rubicon wouldn't be doing a 10% share buyback if it meant the dividend yield was at risk. They would hold the dividend up first.

In any event, the sharemarkets look to be for a choppy ride into and through 2008 and yielding at 12-14% as REU, RJT and RAT are is a relatively 'safe' place to be me thinks!