Can a REIT be evaluated using the same metrics as regular stocks? Perhaps no and if so are there any REIT specific tools?

E.g. These symbols "O", "DLR" are considered overvalued by regular metrics.

  • 2
    It might be good to modify your question specifying the metrics you are interested in and find useful. There are as many stock metrics out there as there are young bank analysts looking to impress their bosses. – rhaskett Jan 7 '16 at 8:51

REIT's are a different beast than your normal corporate stock (such as $AAPL). Here is a good article to get you started. From there you can do some more research into what you think you will need to truly evaluate an REIT.

How To Assess A Real Estate Investment Trust (REIT)


When evaluating REITs, you will get a clearer picture by looking at funds from operations (FFO) rather than looking at net income. If you are seriously considering the investment, try to calculate adjusted funds from operations (AFFO), which deducts the likely expenditures necessary to maintain the real estate portfolio. AFFO is also a good measure of the REIT's dividend-paying capacity. Finally, the ratio price-to-AFFO and the AFFO yield (AFFO/price) are tools for analyzing an REIT: look for a reasonable multiple combined with good prospects for growth in the underlying AFFO.

Good luck!

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