I like to represent a REIT’s AFFO relative to its stock price, first by dividing AFFO by the number of common shares (to get a “AFFO per share” amount), and then by dividing the stock price by the “AFFO per share”. MB BOTTOM-LINEThere’s no perfect measure of a REIT, but I like to use the Price-to-AFFO multiple to compare the “price” of REITs. It’s like using a special REIT version of a “price to earnings per share” multiple to compare how the market values different REITs. The higher the multiple, the more the market is willing to pay for that REIT’s income. Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock.

Source: Philippine Star August 18, 2021 00:45 UTC