Hi there! The most important metric when valuating REITs is the NAV (Net Asset Value). The NAV is the market value of its assets net liabilities and dividends. You should look for REITs with a high NAV as this indicates that the REIT has potential for strong earnings and good management. Another metric to consider is the capitalisation rate. The cap rate measures the property yield in other words, the return on investment of a property. Broadly speaking, a high cap rate means the purchase price is low.
Hi there! The most important metric when valuating REITs is the NAV (Net Asset Value). The NAV is the market value of its assets net liabilities and dividends. You should look for REITs with a high NAV as this indicates that the REIT has potential for strong earnings and good management. Another metric to consider is the capitalisation rate. The cap rate measures the property yield in other words, the return on investment of a property. Broadly speaking, a high cap rate means the purchase price is low.