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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Link to RioCan's Q1 Report: https://s1.q4cdn.com/847730316/files/doc_financials/2020/q1/REI_1Q20-Report-to-Unitholders...pdf
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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)
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#REITinvesting #CanadianREITs #understandingREITs #howtoanalyzeaREIT, #riocanstock
Sources
Types of Reits
https://www.investopedia.com/terms/r/reit.asp
REIT Analysis
https://www.investopedia.com/articles/04/030304.asp
RioCan Wikipedia Page
https://en.wikipedia.org/wiki/RioCan_Real_Estate_Investment_Trust
I am not a certified financial planner, I am just sharing things that I've learned through my own experience and hope it helps you out.