cambridge reit: 27% yield!

nov 28: someone bought 1.9 m on the open market info.sgx.com/webcoranncatth.nsf/VwAttach...rust.pdf?openelement

Refinancing S$390 million already cost the REIT 6.6%... This will resulted in a 20% cut in DPS for 2008 and 2009. This also means that the REIT will have ZERO growth in 2009 given that they cannot leverage up to acquire assets. Will investors still be keen on this type of zero growth counter? Maybe for the yield......

Avoid ALL REITs. They have a uphill task to manage their refinancing as well as to grow the DPU. Anticipate ALL REITs to spend 2009 consolidating their balance sheets, writing down their overly valued assets and de-leveraging from over zealous acquisitions in 2007/2008. :laugh: :laugh: