Good evening,

There’s only one Tony Pitt in Australia’s property, but his move on pubs’ owner Hotel Property Investments has set the cat among the pigeons.

The theme of REITs this year has been widening discounts. Equity investors reckon REITs are in for a tough time, while their managers ignore the noise and increase property values to exacerbate discounts to NTA.

It’s created the situation where Pitt’s 360 Capital could raid a HPI stake at about a 20 per cent premium to the prevailing share price, but still a 12 per cent or so discount to NTA.

The question is who’s vulnerable next? Investors are willing to sell at a discount, provided it’s a good enough premium to the security trading price, setting the scene for corporate activity.

Elsewhere, we look at Link Administration, which has been asked to re-apply for AustralianSuper’s work, and check out what’s happening with Vector’s metering auction.

We’ve also spotted more brokers at Songtradr...

Happy reading,

Anthony Macdonald, Sarah Thompson and Kanika Sood

Street Talk Editors