| 22.08.2011 - UK: Reits overdue correction as property premium hits 2007 high |
| UK real estate investment trusts (Reits) are at risk of a sharp downward re-rating relative to the wider equity market, as the cost of property versus shares hits its highest level since the bubble of 2006. Following the sharp downward equity correction of the first week of August, the FTSE is trading at a forward price to earnings (P/E) multiple of 11.1x, while the chase for yield has pushed Reits to a 10% premium to assets. .............................................Full Article: Source |