The normal incomprehensible rubbish from Fairfax's chief fluffer, the aptly named Caroline Cumming.
"THE start of the year has been tumultuous for the listed property trust sector, with three groups - Centro, MFS and Allco - dominating the news."
.... well allco isn't a property trust and isn't a component of the property trust sector.
"And the experts are warning investors that the coming 11 months will be just as bumpy."
"Since last May the listed property trust sector has lost 32 per cent of its value, compared with the decline in the overall equity market, about 25 per cent."
"Gone are the days of "vanilla" listed property trusts, where investors bought units in the trusts, and the trusts then used that cash to buy a building in Australia and collected the rent - which was paid back to investors as tax-free distributions."
.... no, Miss Cumming, income from rent forming part of the distribution was entirely TAXABLE to investors. Income representing various kinds of depreciation allowances were "tax defered" and some varieties, for a time, tax-free.
"Today more than 80 per cent of the listed trusts own properties across the globe, from flats in the former East Germany to shopping centres in Prague and warehouses in Wisconsin."
"The trusts that have survived the latest sell-down have been those with a simple business formula, strong management and an Australian focus."
.... umm, if survived means "not broke", they have all survived, so far. If survived means "not severely down" in the latest selloff, which ones would that be exactly ? They are all down.
"Analysts say the upcoming reporting season for the first half of the 2007-08 year, which begins in the second week of next month, will show the full extent of the flat Sydney residential market and turmoil overseas."
... I am not at all sure that the "flat Sydney residential market" directly affects the income of businesses which invest in office towers, shopping malls and warehouses. Please explain, Miss Cumming.
There's more of the same but I could not be bothered. Unfortunately this lame-brained bint has been writing this sort of incomprehensible non sequitur drivel for years now and it is a compelling reason to sell off Fairfax IMHO.
MGR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
