FALL OF THE REIT

On average, Canadian REITs are now trading at a discount to their net asset value, creating value for a buyer. RBC Capital Markets said in a recent report that the average Canadian REIT is trading 4% below its net asset value while the long-term trend is for Canadian REITs to trade at 6% above. Blake Hutcheson, the Canadian president of CB Richard Ellis, said there is no question the drop in value does create some buying opportunities for private investors. "You have to wonder whether it is a good buying opportunity in the capital markets," said Mr. Hutcheson, noting real estate fundamentals are "fabulous" and the brokerage/leasing industry is having a "monumentally" good year.