grabbed a little bag full, page-17

resi-i know opinions are part of hc, but just for the record the current nta is a result of binding accounting regulation called " marked to market" which in the case of reits is a very large part of the problem ,they being
the very same valuations that affect lvr and in some cases the covenants that go with the loan contract,the management of mof "the TEAM" have in my opinion completed an excellent job in staying the slide and retaining core financing thru selldowns and one cap raising.

as the world recovers and demand for office space etc grows{given the reluctance in the current climate for anyone to build, demand is likely to grow} and the rental per sq. metre goes up then that quite simply will improve valuations,further more ,given nta is historical i would suggest reality says valuations are already on the move,in the case of usa exposure as the credit crisis unwinds liquidity and thus valuations will improve,and on the subject of the defaults that you raised,they are usa loans which have a legal frame work that allows default and the lender becomes responsible a nonrecourse loan,you see its the lender who has to get the valuation right the borrower has the right to hand back the keys,so in light of that you can probably quess the reluctance of any usa financial institution to fund the next tallest building in the world.

anyway i could talk for hours on reits but anyone who is really interested should have a hard look at mofs financial structure in fact any of the so called mac models they are built on debt but unlike bbi,vpg,afg and many others it is nonrecourse debt,and we all need debt to grow,there is nothing fundamentally wrong with the model mof used,it was the rapid unwinding of financial markets ,the inability to raise large scale finance, and not just mof, this occurred the world over the real gfc ,and the subsequent impact on valuations which through international accounting standards require mark to market valuations,i have to say this is the first stock i have real confidence in especially the management team,i believe they have done an excellent job under the circumstances, responding with viguor,rectitude without procrastination in the face of the unknown,and facing shareholders after on the investor forum would have been a personally formidable task telling people what the gfc means,i was there a room of approx 1200 mainly retirees,
it takes courage to address a group like that who have lost their hard earned retirement,and in no way do i see the management group at fault and for the record on the day there were no protesters no sour sentiment from the audience,just acknowledgement of the gfc the worst financial disaster in 70years and thank god govts today respond differently to 1928-30 or we would all be on the street begging