In my previous article I made the case that currently small-cap REITs offer historically high discount relative to large-cap REITs. The current discount is the steepest in the past 10-year period. While both the small-cap and large-cap REITs have correlated strongly there have been some periods when deviation have occurred. However, in that case sooner or later convergence has taken place bringing small-caps either down or up depending where they trade at relative to large-caps. In short, the main arguments supporting the thesis of small-cap REITs closing the 63% P/FFO multiple gap from the large-caps