A post from the VPG thread which may be of interest...Please...

A post from the VPG thread which may be of interest...

Please find extracts from LM's Aug '09 report:

OVERWEIGHT POSITIONS ACTIVE %
Macquarie CountryWide Trust +4.3
Macquarie Office Trust +3.9
Valad Property Group +3.7
Dexus Property Group +2.4
GPT Group +2.0

Adding back some relative value this month were portfolio
overweight exposures to Lend Lease Primelife (+47.0%), Challenger Kenedix Japan (+35.9%) and Valad Property Group (+27.4%).Lend Lease Primelife gained significant ground as it announced a favourable full year result as well as plans to reduce debt and consolidate ownership of properties and aged care operations.Challenger Kenedix Japan also benefited from a well received full year result.

Meanwhile, Valad benefited from a restructure of its
European property holdings with Bank of Scotland that protects its Australian tangible asset base and frees up cash flow from its funds management platform.

Outlook

Despite the significant recent strength in the A-REIT sector, our analysis continues to indicate that selected
A-REITs remain attractively valued relative to long term expected valuations as well as to cash and bonds. A-REITs have been quick to adjust to the new capital environment.

The sector has reduced debt significantly and refocused
on traditional rental streams that see it well positioned
going forward.

Our view is that while the sector faces some shorter term vacancy and high interest cost headwinds, the lack of new supply will significantly benefit the existing pools of property capital stocks.

The conclusion is that the sector continues to offer the potential for attractive total returns, with valuation anomalies clearly evident.

This sectoral outlook is bolstered by the significant opportunity we are seeing at the stock level. We have over four times the normal dispersion in our investment signal, a clear indicator of increased opportunity.

This, combined with the turning point observed in
markets over the past six months, leads us to be very optimistic about the medium term return prospects for
both the sector and, in particular, the portfolio.