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It's tempting to assume a Price to Book Ratio of more than 1 means the company is over-valued and less than 1 means it is under-valued. However, sometimes there is a good reason for a high or low book ratio. Stock market prices don't just take into account the current earning power of a company but also factor in future expectations.
- Annualised Passing Rent
- EPRA Dividend Cover
- EPRA Earnings
- EPRA EPS
- EPRA Nta
- Direct Portfolio Net Initial Yield
- Net Loan-To-Value
- Net Loan to Value
- Net Gearing
- The Ongoing Charges Ratio
Annualised passing rent refers to the total amount of rental income received from a property over the course of a year, before deducting any expenses or allowances. It is an important metric for REITs as it helps to measure the income-generating potential of the properties owned by the REIT.
EPRA dividend cover is calculated by dividing a REIT's EPRA earnings by its total dividend payments. EPRA earnings are a measure of a REIT's recurring income, excluding one-off items and fair value adjustments. By dividing EPRA earnings by total dividend payments, investors can determine the number of times the REIT's dividend payments are covered ...
EPRA (European Public Real Estate Association) earnings are a widely used financial performance measure for real estate companies, particularly for REITs in Europe. It is a measure of the underlying earnings of a company, which takes into account the recurring income generated from its real estate operations and eliminates one-off items and other n...
EPRA (European Public Real Estate Association) earnings per share (EPS) is a variation of the traditional EPS calculation, which takes into account the recurring earnings generated by the company's real estate operations and eliminates non-recurring items and other non-cash items.
EPRA (European Public Real Estate Association) net asset value (NAV) is a variation of the traditional NAV calculation, which takes into account the fair value of the company's real estate assets and eliminates non-recurring items and other non-cash items. It provides investors with a transparent and consistent method of evaluating a REIT's underly...
Direct portfolio net initial yield is a measure of the rental income generated by a REIT's real estate portfolio, expressed as a percentage of the market value of the assets. A higher net initial yield indicates that a REIT is generating a greater amount of rental income from its real estate assets, relative to the market value of those assets.
Net loan-to-value (LTV) ratio is a measure of a REIT's debt leverage, expressed as a percentage of the market value of its real estate assets. The net LTV ratio is calculated by dividing the total outstanding debt (net of cash) by the market value of the real estate assets. A higher net LTV ratio indicates that a REIT has a greater level of debt in...
Net loan to value (Direct Portfolio) is an important financial performance measure for REIT investors, as it provides insight into the level of financial risk associated with the REIT's core real estate portfolio, which is critical for evaluating the investment potential of a real estate company. Change in fair value of investment properties is a f...
Net gearing is a financial performance metric that measures the level of a REIT's debt in relation to its total assets. A higher net gearing ratio indicates that the REIT has a greater level of debt in relation to its total assets, which can increase the risk of default in the event of a market downturn.
The Ongoing Charges Ratio (OCR) helps to determine the overall cost effectiveness of the REIT's management team. It includes all the costs associated with running a REIT, such as management fees, administration costs, property management fees, audit fees, legal fees, and other operational expenses. For REIT investors, the OCR is important because i...
Aug 29, 2024 · Key Takeaways. Real estate investment trusts (REITs) are required to pay out at least 90% of income as shareholder dividends. Book value ratios are useless for REITs. Instead, calculations such as ...
Feb 6, 2024 · A REIT (pronounced REET), or real estate investment trust, is an entity that holds a portfolio of commercial real estate or real estate loans. Congress created REITs in 1960 to provide all ...
- Matthew Dilallo
- 6 min
Real estate investment trusts (REITs) offer a number of benefits to investors, including: Diversification: REITs own a portfolio of real estate assets, which can help to reduce risk. For example, if one property in the portfolio experiences a decline in value, the other properties in the portfolio may help to offset the loss.
Cap rate is the real estate equivalent of the stock market’s return on investment. It’s the ratio between the amount of income produced by a property to the original capital invested (or its current value). It tells you the percentage of the investment’s value that’s profit. Cap Rate divides your net operating income (NOI) by the asset ...
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What is a REIT in the UK?
Jul 18, 2023 · In the UK, a REIT is a company (or group of companies) carrying on a property rental business which meets certain conditions. The use of “trust” in the name is a misnomer and in fact a property investment company which meets the necessary conditions, can elect into the regime by notifying HMRC. A REIT is exempt from corporation tax on both ...
