02-22-2020, 08:31 PM
(This post was last modified: 02-22-2020, 08:34 PM by crimsonghost747.)
It's really hard to give any sort of a "regular" number, as it really depends on a million things. And P/E is kinda useless since it includes depreciation and amortization, numbers that the REITs of course have to include but are kinda useless since the majority of residential real estate does not depreciate. Funds from operations (FFO) is more commonly used, and of course some prefer to use the adjusted FFO. They all report FFO in their quarterly reports too.
The only REIT I had was Northview. Well I still have it but some bastards are stealing it away from me. At a 13% premium but I still consider that a good deal for them, not a great deal for me. I don't remember the numbers exactly but their investor report from January says that their P/AFFO was a little over 16. Yield at the time was somewhere between 5% and 6%. It's been significantly lower too, I did my buys a lot lower and it must have been around P/FFO of 12 or 13. Yield was maybe around 8%.
This REIT has always traded at a lower valuation than the others though, mainly due to quite a bit of exposure to areas that live or die based on natural resource prices. Many other Canadian ones seem to have their P/AFFO at 20+.
Yes, those high yielders usually have a reason for that high yield. Sometimes it's debt, sometimes it's something else. Just be sure to stay away from mREITs, (unless that is what you want) because they are a whole different beast. And usually come with attractive 10% yields. :p
edit: My current research has me at 10 tickers just from US and Canada. Still need to look into Europe and Asia and then start narrowing down. This will take some time and I'm not in a particular hurry as I have a couple of months to do this.
The only REIT I had was Northview. Well I still have it but some bastards are stealing it away from me. At a 13% premium but I still consider that a good deal for them, not a great deal for me. I don't remember the numbers exactly but their investor report from January says that their P/AFFO was a little over 16. Yield at the time was somewhere between 5% and 6%. It's been significantly lower too, I did my buys a lot lower and it must have been around P/FFO of 12 or 13. Yield was maybe around 8%.
This REIT has always traded at a lower valuation than the others though, mainly due to quite a bit of exposure to areas that live or die based on natural resource prices. Many other Canadian ones seem to have their P/AFFO at 20+.
Yes, those high yielders usually have a reason for that high yield. Sometimes it's debt, sometimes it's something else. Just be sure to stay away from mREITs, (unless that is what you want) because they are a whole different beast. And usually come with attractive 10% yields. :p
edit: My current research has me at 10 tickers just from US and Canada. Still need to look into Europe and Asia and then start narrowing down. This will take some time and I'm not in a particular hurry as I have a couple of months to do this.