I have been intensively involved in the real estate sector and have discovered some supposedly exciting companies such as

$SPG (-0,41%)
$GLPI (-0,9%)
$CUBE (+0,28%) and $BRX (+0,83%) 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 (-1,4%) Leading provider in the self storage segment with an FFO yield of approx. 5.9%

• Prologis $PLD (+0,12%) Global leader in logistics real estate with strong growth

• Equinix $EQIX (+0,56%) Data center operator with a scalable business model

• Agree Realty $ADC (-0,53%) Focus on retail properties with long-term rental agreements and an FFO yield of approx. 5.7 %.

I also see Energiekontor $EKT (-4,4%) 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?