CLPR - Stop Buying Yield

• Investors in REITs often put vastly too much emphasis on dividend yields.
• When they switch over to FFO multiples, they are still not digging anywhere near deep enough.
• AFFO multiples will put you in a better situation, but it still isn’t enough. To evaluate the REITs, you need to understand leverage.
• Equity REITs with high leverage generally underperform. When you filter down to only considering REITs with a high yield, you get a bad sample size.
• UMH is a great example of a common amateur pick. It has been garbage for years. The right path was SUI & ELS.

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