We have a NEUTRAL rating on the S-REIT sector. The 'REIT as growthstory' has seen a massive reversal. No thanks to a collapse in unit prices,the sector is now trading at an average 20% trailing yield and a 63%discount to book. We believe that perceived risk will drive S-REITperformance in 2009. This will be assessed on the balance sheet(refinancing concerns, risk of revaluation losses, gearing) and the income(cost of capital, rental declines based on sector and geographic focus)levels. We generally think S-REITs are oversold. While we expect shareprice volatility to continue, value seekers have an opportunity toselectively pick up some good assets at what we think are really fairvaluations. Within our coverage universe, we have BUYratings on Suntec REIT(fair value: S$0.90), CapitaMall Trust(fair value: S$1.94) and LMIR Trust(fair value: S$0.39).