Ann: Announces Sale of Northbridge, WA , page-10

Hi drbrooks,

I think your approach is extremely sensible and highly likely to work in the long run. In terms of risk, i tend to look for value but be a little cautious at the same time and have always liked the more irreplacable, almost monopolistic value in stocks like CHC & MDT away from office REITs as i personally feel a little more secure in their value. I also love utility stocks for the same reason, but very rarely invest in the mining sector as i feel very underqualified to assess their value and like real physical book value assets compared to hype and speculation.

The main reason people used to invest in REITs is nice slow maintained growth and a happy regular dividend. Now the oportunity arises for massive growth AND over time returning to high performing dividend stocks so this is the ultimate WIN/WIN scenario. As such what has happened is long term REIT holders are a little freaked that their supposedly SAFE portfolio has got burnt down AND in the case of some REITs the dividend has gone away and theres little near future term of it getting reinstated. This risk and panic has got people running for cover, and a lot of it is hype! I'm sure a small percentage may not recover and those will be REITs in non monopolistic REIT sectors with high debt and insolvent tennants or empty buildings which will result in fire sales of their portfolio's. Even in this scenario as a unitholder you can still be on to a winner if the NTA/share when distributed is greater than purchase share value.


For the record i currently have nearly 40% of my portfolio in 6 different property stocks and looking to invest more.

What do you guys believe are the current *hot* REIT and why? (i go for MDT, for the monopolistic massively undervalued nature of it).