ILPT - The Art Of Finding Hidden Gems In Small Cap REITs

In a recent article entitled “Big Opportunity in Small Cap Value REITs,” Dane Bowler shares some very interesting charts on the REIT market. I recommend that you read his article, but here are my two favorite charts from it:

Chart 1: Compares Valuations to Market cap

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Chart 2: Compares FFO Multiples of Small caps vs. Large caps

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The takeaway for value investors is that:

• Small cap REITs trade at significant discounts relative to large caps REITs.
• As REITs grow larger over time, their FFO multiple tends to expand – resulting in

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