What do people think of the whole Listed Property Trust sector now ?
As part of a diversified long term asset allocation, property trust do have a place. If you look at the chart of ASX200 LPT over the last 7 years, you can see in hindsight what a bubble it was waiting to burst in 2007.
This sector is replicated by a listed ETF called SLF, yielding around 8% pa on 2007 dividend, excluding tax deferred and franking benefit.
Is the crash overdone ? is more to come ?
My view is that, the risk to reward ratio is getting favourable. Most of the big LPT companies have reported their half year result, those that are overgeared and expanding to USA, Europe using tons of debt have been harshly (and deservedly so) punished, so the price now has probably reflected the risk forward.