Analysing REITS

[piggo]

in that case, shall we still deduct the present value with net debt (or add net cash)?
thanks again

No, I don't think it's reasonable to deduct net debt from unlevered FCF for a discounted cashflow valuation.

I wonder if it is really necessary to analyse REITS to such accounting depths for investing by minority investors? Unless you are planning a takeover of the entire REIT company , most of the information for public investors is available in the annual accounts.

It gives confidence to hold during times of significant paper loss, and also a comparison to other investment opportunities out there. Of course the derived value is only as good as its underlying assumptions (i.e projected cashflow which in turn depends on occupancy, financing costs, valuation etc).