- Investors have shown a disconnect between their belief in physical housing assets and in housing REITs.
- The performance of the two is strongly correlated over longer time periods, adjusted for leverage.
- That makes sense because owning the REIT gives investors an economic stake in the money those assets produce.
- The REITs are generally far more cautious than individual investors and most choose not to take on extreme leverage.
- If you think FFO or AFFO multiples are going deep enough in REIT analysis, you're doing yourself a disservice by quitting early.
For further details see:
Investors Hate Housing REITs, Love Housing