Yeah, very good development and in conjunction with other 'rumours' expressed on Business Spectators 'Lunch Deals' it appears that REITs are all positioning themselves. EG DXS talking to IIF, MIX and others.
IMO REITs are now predominantly in two categories - "Lambs" are those that could be taken over. "Wolves" are those that now have strong balance sheets and will do the taking over.
I don't think it matters which type of REIT you are invested in:
1) "Lamb": Any possible offer price will be greater than current trading SP and thus investor will get ST capital gain
2) "Wolf": Successful takeovers will lead to capture of property assets well below valuation and allow for efficiencies, growth, etc, etc...
IMO keep invested in REITs for the time being. As PViews say, I think we're moving to the next phase in the consolidation process.
As for MOF, I think this is such a good, undervalued REIT it would be a shame for it to be taken over and for us investors not to receive the full upside over time.
Cheers John
MOF Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
