This is a LONG ONE! Here is a video about REIT investing for beginners. If you ever wondered how to analyze a REIT this one is for you. We look at Canadian REIT RioCan (REI.TO stock) and use its first quarter earnings to analyze key ratios that are important when looking at a REIT.
Because REITs are governed and taxed differently than regular companies our regular stats like P/E and Book Values are not useful. Instead we have to do a bit of work to figure out some new ratios that will help us understand and compare different REITs. I'll also mention a couple REIT ETFs in case you are more into that.
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Bookmarks (you'll need'em!): Intro (0:00) 1. What is a REIT? (0:20) 2. Types of REITs (0:53) 3. Pros and Cons of REITs (1:15) 4. REIT Analysis (4:21) a. Property Types (5:50) b. FFO (Funds from Operations) (8:37) c. AFFO (Adjust FFO) (11:19) d. NOI (Net Operating Income) (12:38) 5. Canadian REIT ETFs (15:08)