You could easily just sock some cash in these two funds as your REIT investment, enjoy their 7% yields and call it a day. Fund managers measure this by comparing debt-to-equity ratios to revenue growth. The idea here is simple: if revenue growth is strong, it can counteract a seemingly high debt load. If debts are low and revenue growth is still strong, then we’ve got a strong REIT with more room to expand. AHH’s bigger revenue growth also means it’s gotten a higher price-to-AFFO ratio, while AHT’s lower growth means it has a lower P/AFFO ratio.

Source: Forbes June 11, 2019 20:03 UTC