{5U}

Time to Pick Up the Pieces of the Global REIT Thud

Equity folks still do not understand credit or capital structures.

U.S. REITs are trading at extremely high valuations in light of a closed credit market and the beginning of the financial recession spilling into the real economy. There is a lag effect. Commercial real estate is yet another shoe to drop.

Buy companies with clean balance sheets that do no not need a robust credit market to grow. There is no need to be a hero on theses stocks.

Whoever wrote this may look smart for the quick equity pop given last weeks movement but longer term fundamentals will dominate.

Equity heads... please learn credit analysis and capital structures or you will be toast in this tape. You guys still do not get it.