Australian REIT Income Fund T.HRR.UN

Whats wrong with HRR.un?

[spazzman]

I have followed this fund since it was a top pick on BNN.  At $10.00 HRR.un dropping towards its N.A.V. $9.36  Current 6.6% yield.  Does anyone believe that this sudden drop in market price has more to do with a preceived interest rate hike that is having an adverse effect on all R.E.I.Ts?  comments please! 

Quick drop from its initial IPO price of $12.00 

From BNN Market Call guest

2013-05-24

TOP PICK

Jaime Carrasco

Australian REIT.  They have not has the rise we had here in Canada. This one went through a huge reorganization that cleaned up the balance sheet but they haven’t had the move.  Australia is one of the only countries that can actually lower interest rates.  Pension funds are entering Australia.  Their economy is tied to resources and China, which would be a risk but that should be temporary.

[gordo32]

Hi spazzman One thing most of us forget is we look at the start @12 ,this is from the prospectus when it started,we find after finders fees we are really at around 11.30.I will paste the full prospectus and you can see No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. PROSPECTUS Initial Public Offering February 26

[gordo32]

Now that is about where I came in ,thinking that was a safe level wrong .It could have something to do with interest rates,I truly am at a loss to explain. Gordo

[generaldisc]

there are many reasons for the sell off. fears of US Fed rate hikes, the Japanese Yen carry trade getting out of high yield stocks, and a recent report that Australian RE may be in a bubble fueled by expectations of Chinese growth.

[spazzman]

I agree with your reasoning, If I had to pick one I would chose Real Estate bubble with raising interest rates being the catalyst.  It is feared that Canada's Real Estate market is on the same path.