Why do REITs still buy back shares even when they have to distribute 90% of their income?

Hello!

Generally, when companies repurchase their shares, it hints to the market that their shares are undervalued. Buying back shares helps enhance the earnings per share of companies since the oustanding share count is decreased. Specifically for REITs, the net asset value tells you whether the stock is trading relative to the intrinsic value of the company. Thus the company's management tend to look at the NAV in comparison to their share price and will buy back shares only when its cheap, not for the purpose of increasing EPS.