how do you pick reits?

I know stock picking requires understanding of balance sheet , income statement and macroeconomics

but i know nothing about how to pick reits. Anyone can kindly share their experience?

Reply 1

Pie-person

Original post by HucktheForde

I know stock picking requires understanding of balance sheet , income statement and macroeconomics

but i know nothing about how to pick reits. Anyone can kindly share their experience?

REITs are basically companies that happen to own a lot of real estate so technically you can use the same methods as companies to value them.

There’s also the real estate aspect too so looking at supply / demand in the markets the REITs operate in, growth rates on the type of properties invested in and average yields for those properties. Interest rates also affect RE returns. In a rising rate environment yields are lower in RE and in a falling rate environment yields are lower.