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Valuing REITs
#1
Hi all,

I'm looking for my next addition to the Roth IRA, and am thinking about REITs, in addition to another Canadian bank (I already have shares of TD), or CVS. I believe I have good ways to get an idea of valuations of Canadian banks or CVS, but I am a bit lost when it comes to REITs.

For those that have invested in REITs, what ways do you use to value these unique stocks? I already have positions in OHI, NRZ, and VNQ. 

I do have an interest in WPC as well as some others in this space, but would love to be able to better tell if they are fairly valued or not.
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#2
Apart from replacing EPS with FFO per share I look at them pretty much the same as everyone else. It's worth to also pay extra attention to the cashflow numbers as well as the debt levels and maturities.
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#3
I also look at FFO and their debt levels. The other thing that I like to look at is their outstanding shares. Have they been increasing them. I want to know if they are decreasing my share of ownership.
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#4
Sorry for the thread highjacking,

I have REITs on a taxable account and I'm thinking about selling most of them sometime this year and buying an ETF tracking the sector. Has anyone looked into that option?
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#5
(02-27-2017, 03:11 PM)Rasec Wrote: Sorry for the thread highjacking,

I have REITs on a taxable account and I'm thinking about selling most of them sometime this year and buying an ETF tracking the sector. Has anyone looked into that option?

I've been. VNQ would be my choice, but I think that REITs are a bit overvalued now.
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#6
(02-27-2017, 04:11 PM)Binary Wrote:
(02-27-2017, 03:11 PM)Rasec Wrote: Sorry for the thread highjacking,

I have REITs on a taxable account and I'm thinking about selling most of them sometime this year and buying an ETF tracking the sector. Has anyone looked into that option?

I've been. VNQ would be my choice, but I think that REITs are a bit overvalued now.

Thanks. It's a 1 time play and a "zero sum game" ie, overvalued on the sell and on the purchase. Paying taxes on capital gains sucks but the impact over a long period of time should pay off.
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#7
My new article covering the Real Estate Sector was just published on Seeking Alpha. The article contains valuation targets, dividend growth predictions and total return projections for 25 different REITs and also provides FAST Graph charts for my top ten selections.

Top Ten REITs For Dividend Growth And Income

Enjoy!
My Blog: DGIfortheDIY.com
Seeking Alpha Author Page 
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