I have been intensively involved in the real estate sector and have discovered some supposedly exciting companies such as
$SPG (+1,09 %)
$GLPI (+1,92 %)
$CUBE (+0,82 %) and $BRX (+1,75 %) discovered.
But there are special features to the valuation of REITs. 🧐
Traditional key figures such as high returns on capital or margins are often misleading, as REITs are legally obliged to distribute at least 90% of their taxable income 🤑 and are also highly leveraged.
In order to better assess REITs, I have read up on the subject and adjusted my valuation standards. Instead of adjusted earnings, I now focus more on funds from operations (FFO) and adjusted funds from operations (AFFO), which more realistically reflect operating profitability.
Here are some of the companies that I find particularly interesting:
- Public Storage $PSA (+2,15 %) Leading provider in the self storage segment with an FFO yield of approx. 5.9%
- Prologis $PLD (+0,82 %) Global leader in logistics real estate with strong growth
- Equinix $EQIX (+0,25 %) Data center operator with a scalable business model
- Agree Realty $ADC (+1,54 %) Focus on retail properties with long-term rental agreements and an FFO yield of approx. 5.7 %.
I also see Energiekontor $EKT (-5,8 %) as an alternative real estate investment 🤓. Energiekontor currently operates 39 of its own wind and solar parks, which generate electricity revenues instead of rental income.
Which companies do you see as particularly promising for a long-term investment?
