Choose Your Own Adventure

Choose Your Own Adventure

US REITs, as a group, achieved their highest P/FFO multiple ever in late January 2015 at 17.8x. The previous high was reached at the peak of the last cycle in early February 2007 (17.6x). After peaking in January 2015, the group multiple...

CONE: A Time to Sell?

CONE: A Time to Sell?

In April 2014, CONE traded below the -2 standard deviation threshold relative to its historical P/NAV spread to the US REIT sector. Since that time, the stock has outperformed the broader REIT sector along with the Data Center group as a whole.

DEI: Is This Time Actually Different?

DEI: Is This Time Actually Different?

DEI hit a rare relative valuation level on Wednesday versus its CBD Office peers. The stock’s PNAV spread to the CBD Office sub-sector breached the +2 standard deviation threshold. This is the first time DEI’s valuation spread relative to its peers has been this high since early 2012 and is only the fourth time it has breached this level in its nine year history as a public company (previous breaches occurred in 2009, 2010 and 2012). Historically, DEI has underperformed peers on 1-, 3-, 6- and 12-month bases...

A New Normal?

A New Normal?

Prior to the financial crisis, KIM traded at a premium to the REIT sector on a relative P/NAV basis pretty regularly. However for most of the time since then, KIM has traded at a discount to the sector as the company transitioned back to more of a pure play North American shopping center business model. For the better part of the past year now, KIM has been trading at a premium to the REIT sector...

Valuation Signal Double Entendre

Valuation Signal Double Entendre

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...