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F.A.S.T. Graphs™ is a powerful research tool providing “essential fundamentals at a glance” on over 17,000 symbols. F.A.S.T. Graphs™ empowers the user to research stocks deeper and faster by allowing them to exploit the undeniable relationship and functional correlation between long-term... More
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  • Adjusted FFO Calculation For WP Carey Inc Graph 2 comments
    Jul 18, 2013 10:58 AM | about stocks: WPC

    Adjusted FFO calculation for WP Carey Inc graph based on annualizing the most recent quarter post the merger with Corporate Property Associates 15 Inc. This brings the current Price to FFO down to 27 from 43, which was reported by FAST Graphs™ prior to the adjustment.

    It's important to note that even after adjusting for this higher FFO number, WP Carey is still commanding a FFO that is approximately double its historical norm as depicted by the blue line on the graph. Consequently, WP Carey appears to be significantly overvalued even after adjusting for the higher FFO potential post merger.

    Another point of clarification is how FAST Graphs™ calculates FFO on REITs. Since individual REITs have numerous latitudes as to how FFO and AFFO are calculated, we have determined that it makes more sense to standardize the calculation of FFO directly from the individual company's statement of cash flows for all REITs based on a formula recommended by Standard & Poor's. For those interested, the formula that FAST Graphs™ utilizes can be found here: http://www.fastgraphs.com/pdf/funds-from-operations-per-share-definition.pdf

    (click to enlarge)

    Themes: REITs Stocks: WPC
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  • Regarding the financial statements, are there differences between how the statements are calculated between a REIT and a c-corp? WPC just switched to a REIT last summer and I was wondering if the previous statements would need to be rewritten or changed to show an apples and apples comparison. Thoughts anyone?
    18 Jul 2013, 02:10 PM Reply Like
  • Ruralist,

     

    Not to my way of thinking. For example FFO and operating cash flows are very similar metrics. Also, both REITs and C corps have a balance sheet, income statement and cash flow statement. Fundamentals are fundamentals, IMHO.

     

    Regards,

     

    Chuck
    18 Jul 2013, 08:34 PM Reply Like
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