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Industry Discussions / Real Estate Inv. Trusts: REITs


Subject:  Re: Poll: Cap Rate for Retail REIT's Date:  5/27/2021  12:49 PM
Author:  CMF_BigECat Number:  86670 of 87022

Hi Kingran,
I read almost all posts on this board but didn't respond because I am not familiar enough with nominal cap rates to give a good opinion. It seems to me that the capitalization rate you are willing to pay is very dependent on many factors including quality of management, quality of the real estate itself, type of retail being bought, whether there is opportunities for upgrade and rent increase.

I don't typically look at cap rate as much as dividend payout, percentage to FFO, debt levels, growth, etc. I am wondering opinion many others who brouse here are in a similar thought process.

To me a single number like cap rate would be equivalent to a PE ratio for a typical stock. I own some in the low single digits and some in the "infinite" category (no GAAP earnings).

Anyway, no offense to the poll, I am just not sure I would take a lack of response as a lack board participation.

I am in a similar boat though trying to figure out if I can add to some of my REITS or whether it is late in the game.
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