the subject of marked to market valuations and the regulation of hedge funds have come up for discussion,both have severely impacted the reit sector,bearing in mind the valuation mark downs combined with the requirement that entities are only able to pay dividends from profits if listed on the asx have severely impacted confidence in the reit sector.
conversely any revision to marked to market valuations will probably impact very positively for the reit sector particularly highrise where materials and labour are the significant costs,and i dont believe these will reduce by 30%,so in the medium term we should revisit a more realistic appraisal of valuations which i suppose will remove the threat of any covenant breach.
so lets us look forward to a much brighter future hopefully reflected in the sp,if not then the substantial dividend should more than compensate,assuming of course it is maintained
MOF Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
