There have been a few threads pointing out that P/E is an inappropriate metric for REITs. I'm not an expert on the accounting issues, so can't add any meaningful comments. Rebalancing is usually a good thing.
I'm not an expert on accounting either. I have a degree in finance in part because accounting is both difficult & really boring.
When making investment decisions a list of asset classes showing which have had the most money flowing into or out of them would be something I'd find very helpful. I much prefer to buy that which is unloved.
As for rebalancing, the other week I finally dumped the modest amount of HY Corp I still had left. It had once been a favorite of mine, though after a huge run up (topping stock returns over the last decade) and a yield down to 4.4% I felt it wasn't worth holding any longer given the risk presented by both lower credit quality and intermediate duration. The fact that HY Corp has been closed since last May also suggested it was a hot fund worthy of dumping. As a Flagship client I get the great privilege of being able to buy such closed funds, though I can't think of any reason I'd want to.