Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Perspective who wrote (169011)	12/4/2008 1:30:38 PM
From: Johnny_Blaze_420	Respond to of 306849

You would look at FFO since net income includes depreciations and real estate valuations ignore them because of the long term inherent appreciation of the asset. I would further deduct operating expenses from FFO as the buildings have to be maintained to get the "true" FFO. Then you can do various analysis such as looking at Price to FFO, etc, to compare them to their piers. But, if you really want to dig i would loot at rent growth assumptions, tenant quality, location, ability to maintain occupancy..etc. Most importantly in this environment I would want to understand how their debt looks as it very difficult to refinance and if they have highly leveraged properties, FFO may be going to pay down debt / restructure... hope that helps...