Whether And How REIT Leverage Is Better Today

Nov. 28, 2023 6:30 AM ET, , , , , , , , 50 Comments

Summary

  • REITs' financials are not accurately captured by computers due to realities that are not reflected by GAAP and also to adjusted numbers.
  • REIT balance sheets have improved in terms of debt maturities, liquidity, and maturity ladders, but Loan to Value ratios have not significantly changed.
  • For specific REITs, investors should focus especially on the debt maturity ladder.

REIT. Concept image of Business Acronym REIT as Real Estate Investment Trust. 3d rendering

Kwarkot

REITs are a small, niche market. Because of the structure of their businesses, their financials are not accurately captured by computers that gather and process SEC filings.

A big reason for that is that many details that matter

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This article was written by

6.43K Followers

R Paul Drake spent decades developing data-driven models in his work as a physicist, and now brings the perspective of a retiree to his investing and writing. He is a life-long reader of economics, finance, and investing, and embraces value investing.

Paul is one of the analysts at the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARE, EPR, NNN, SPG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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