why the sudden drop?, page-11

Hi Riv

I suppose as a real Estate Agent I might see things a little differently than just reading the financial reports. But to answer your question I also follow these companies
ALZ BWP FKP FRI GPT MGR PPC & SDG as well as some others.

Since October last year there has been a general return to Property Sector partially due to lower interest rates partially due to minor shift from industrials to real estate. So probably it is safe to say that all listed property companies have benefited from this shift in one way or another.

However and notwithstanding what you said which I don't necessarily disagree with, with minor exceptions some CO.s will probably perform better that others particularity in the next 6-12 months.

In my view despite the low interest rate environment debt restructuring will be a major stumbling block which adversely effect the developers.

So the midcap companies with low debt should outperform.

If you look at MGR & ALZ for instance they are still down a fair bit from their all time highs. But that is not necessarily a good indicator of values.

ATM IMHO (SDG @ $1.59)is the safest investment since it has almost no debt with net asset backing of $1.87 per share and with over a billion dollar in future developments in horizon for every CWP share you can buy about 4 SDGs which it makes better sense.

You could even consider diversifying into several CO.s ie PPC & FRI very different companies in terms of composition asset backing core activities and etc. all under $1.30 P/S

I have been wrong on more occasions than I have been right so please do your own research but since you asked I felt obligated to respond.