- Most REITs are struggling to keep up in the current environment, encouraging some to transition toward more resilient segments.
- After years of growing leverage and falling profits, Colony Capital has made significant efforts to transition toward digital assets such as telecommunications and data centers.
- While the transition is steadily occurring, CLNY investors appear to be overvaluing the true profit potential of its new platform.
- With annual FFO per share only expected to rise to $0.2-$0.25, it seems CLNY should be trading closer to $3.6-$4.5.
- Rising real interest rates and declining technology stocks may catalyze a sell-off in CLNY over the coming months.
For further details see:
Colony Capital: Avoid The Digital Hype And Focus On Cash Flows