2024-07-16 06:22:58 ET
Summary
- REITs are currently trading at a 15.5% discount to NAV. Timber is even more discounted.
- Timberland values are rising, evidenced by analyst estimates, aggregated sale price trends, and recent transactions.
- Timber REITs are undervalued due to myopic focus on near-term EBITDA, but long-term value lies in the perpetual nature of timberland assets.
The market is always in flux, with various asset classes moving in and out of favor, causing related stocks to trade above or below fair value. REITs are clearly out of favor right now, with the average REIT trading at a 15.5% discount to its NAV (net asset value).
Perhaps even more interesting than the REIT average is the sector level breakdown of these discounts....
Read the full article on Seeking Alpha
For further details see:
Everyone Wants Timberland Except The Public Market