How to Assess a Real Estate Investment Trust (REIT)
When you analyze REITs traditional metrics such as earnings-per-share (EPS) and price-to-earnings (P/E) do not apply. Funds from Operations (FFO) For most businesses, depreciation is an acceptable non-cash charge that allocates the cost of an investment made in a prior period. But REIT’s behavior is different because property often appreciates its value. This affects the Net … Read more