William Eichler

REITs and the Fallacy of FFO

The current and future income, plus the interest rates environment will determine the value of a property. The income from a medical office building, laboratory, or senior housing facility is the foundation for Health Care Properties as an investment. I forsee no slack in demand for their properties and therefore no decline in future income. Perhaps Mr.Woon should re-work his dissatisfaction with FFO & depreciation.