SNH - The Dark Side Of REIT Investments - Revisited

In a recent article entitled “The Dark Side of REIT Investments,” I go on to explain that small-cap REITs present lucrative opportunities right now:

• They trade at just 12x FFO compared to 20x FFO for comparable large-cap REITs.
• They often enjoy greater growth prospects, despite the materially lower valuation.
• Finally, they also pay greater dividends with a 6% average yield.

Higher growth combined with higher yield and lower valuation is a perfect recipe for spectacular returns. However, as you have probably already know:

“There ain't no such thing as a free lunch.”