Here's Some Investment Advice Off The Beaten Path

Why Asian REITs are Knocking Out European REITs
For the first time in seven years, the value of Asian real estate investment trusts (REITs), has exceeded the returns generated by European REITs so far in 2007. No other segment of the global REIT market has fared better since 2000 than European REITs, dominated by British real estate companies.
In large part, we can blame the discrepancy in performance between Asian and European REITs on the poor returns generated by British REITs this year. In fact, U.K. REITs are the worst performers among all real estate vehicles in 2007.
One reason why British REITs are hurting is because of a vigilant Bank of England, which raised interest rates again last week to 5.5%, the highest lending rate in the G-7. British inflation continues to rise and speculation in the residential and commercial property markets has begun to cool. Rising rates hurt the relative appeal of REITs, similarly to fixed-income securities, which are interest-rate sensitive investments.
But bear markets also create opportunities for value investors.
Globally, REITs trade at an average 35% premium above their net asset value, or NAV. But in the United Kingdom, REITs are trading at big discounts - the only major market in the world where REITs are selling below their book-value.
One of England's largest REITs, a household name, currently trades at a 12% discount to its NAV while several others sell at discounts ranging from 5% to 8% below NAV.
The British market might offer good values for real estate investment trusts. But I'd rather look to cheaper property markets in Asia with far greater growth potential and cheaper currencies, especially in Singapore and Japan.