REIT
Real-estate investment trusts, valued on the income their properties throw off and the value of the assets themselves.
FFO, AFFO, payout durability, leverage, and asset quality matter more than GAAP earnings. We anchor on FFO multiples and dividend durability, with balance-sheet refinancing risk front and center.
Real-estate investment trusts are valued on the income their properties throw off and the value of the assets themselves, not on conventional earnings — accounting depreciation makes reported net income nearly meaningless for them, even as the underlying buildings hold or gain value.
We work from funds from operations and net asset value, and we pay close attention to the cost, duration and structure of debt. Real estate is a leveraged business, so the rate environment moves it directly — a great portfolio can be a poor investment if it is financed at the wrong time.
The questions that move the call for a reit — applied consistently across every name in the archetype.
FFO / AFFO per share
Funds from operations — and the after-maintenance version — are the real earnings power behind the dividend.
NAV vs. price
Is the trust trading above or below the private-market value of its properties, and why?
Debt cost & duration
Leverage and the maturity wall determine how exposed the equity is to a move in rates.
Occupancy & rents
Income durability comes down to who the tenants are, how full the buildings are, and where rents are heading.
Example reports
How the archetype lens reads in practice — free to open in full.