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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (30334)	7/29/1998 12:41:00 PM
From: Ed Beers	Read Replies (1) \| Respond to of 132070

> I think that REITS are essentially closed end mutual funds, so selling above book value is similar to a CEF selling at a premium. The fact that they do sell above book is an indication of the way the public stretches out for yield. < Is book value really the same for a REIT as a CEF? CEF book value is calculated on the current value of the securities held. Real estate book value is typically based on the purchase price with subsequent depreciation. Given recent changes in real estate pricing, book value could be very different from liquidation value. I'm not sure that book value for a REIT means much of anything.... Ed