A +2 standard deviation relative P/NAV signal for AAT surfaced earlier last week, suggesting the stock is potentially expensive vs. the broader REIT sector.
A closer look at the history of such signals for AAT yields mixed results. Since January 2013 (two years after the company’s IPO), this same signal for AAT has surfaced three times (excluding this week’s signal). The average relative performance of AAT vs. IYR subsequent to those three signals is displayed in the table below.
AAT’s historical stock performance following +2 standard deviation signals suggests underperformance in the short-run and outperformance in the medium to longer term.
It’s important to note that not all signals are created equally. Valuation signals are very informative and useful but in most cases cannot be acted upon in isolation. The DISCERN Real Estate platform provides valuable context for valuation signals and combines that important information with key fundamental data to provide the insight necessary to make better informed decisions.
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