Publicly Traded Real Estate Securities

Free CFA Level II lesson in Alternative Investments. 14 min read, ~2,036 words.

FFO = Net income + RE depreciation - gains on sale. AFFO = FFO - maintenance capex - straight-line rent adjustment. REITs must distribute at least 90% of taxable income to qualify for pass-through tax treatment; retaining more than 10% forfeits the status. NAV = (NOI / cap rate) +...