Following the recent market crash, many REITs are priced at extraordinarily low valuations and offer generational buying opportunities for long term-oriented investors.
- Premiums to NAV have turned into discounts to NAV.
- 3-4% yields have turned into 6-8% yields.
- And valuation metrics have dropped from 20x FFO to 10-15x FFO.
In many cases, REITs have dropped so much that they are now offered at up to 50% discounts to net asset value, which essentially means that you can buy real estate at 50 cents on the dollar.
At these prices, we are very confident that