Continuing the theme there was an article in an AFR publication that appeared earlier this evening saying that investors are starting to embrace risk and that as a result REITs were back.
The article claims that whilst we are nowhere near a full-blown recovery, market observers are becoming more positive about listed property trusts.
Concern over valuations seems to have abated and a growing throng of property players are now saying the worst is behind us.
The article cites WDC and Mirvac as saying that asset values are very close to the point of stabilisation and even though capital rates might stabilise, the key was that rental earnings were holding up.
Hopefully this sentiment will have a flow on effect to MOF. Today was certainly a good start with the stock up 7.4% on the day.
MOF Price at posting:
29.0¢ Sentiment: Hold Disclosure: Held
