Accrual v. cash accounting

Cash is King

March 9, 2017

Switching to cash accounting from accrual accounting is more than an academic exercise

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Leverage

Mister Macho

February 23, 2017

Over espresso, boss of a private equity shop tells why he hires Ivy League MBAs, and why he is genetically wired to take risks

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Urban Edge Properties

Shopaholic

February 9, 2017

It is likely that shopping malls are here to stay. But not at their current valuation

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InnSuites Hospitality Trust

A gloomy landscape

January 26, 2017

Management’s bearish outlook on the hotel industry may upset some investors

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Mortgage-backed securities

2007 Memorabilia

January 12, 2017

How to win markets and influence people

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Exchange traded funds

Mind the Gap

December 28, 2016

When the accounting convention underweighs earnings and overweighs assets

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Universal health realty trust

A Rembrandt valuation

December 1, 2016

When a property acquisition frenzy is ill timed

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Office REITs

The Good, the Bad and the Ugly

December 15, 2016

Even with a magnifying glass, it is not easy to find value in office properties

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Margin of safety

Where is everybody?

November 3, 2016

It is not easy to find bargains out there. But that should not be a call to take risk

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Steadfast apartment REIT

Don’t rock the boat

November 17, 2016

An offering to issue shares is attractive. As long as rates stay low

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FFO v. Earnings

Procrustean bed

October 20, 2016

Funds from operations is a helpful metric to understand dividend behavior. But not all supplemental metrics are easy to gather and to analyze

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Industry trends

Be here now

October 13, 2016

Researchers find that market capitalization and institutional ownership mushroomed in past few years

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Colony starwood homes

Que sera, sera

October 6, 2016

A grand merger leaves shareholders happy

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Simon property group

The Rear-view mirror

September 29, 2016

Five years ago was a better time to invest in shopping malls

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Adjusted funds from operations

Simple but not easy

September 22, 2016

Disparate views about how to calculate the performance metric

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Rexford industrial realty

Icarus' dilemma

September 15, 2016

A successful track record results in unprecedented price levels

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Dow Jones U.S. Real Estate Index

Indexonomics

September 8, 2016

Passive investing in real estate offers diversification. But it comes at a hidden cost

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Altisource residential corporation

What if

September 1, 2016

Flaky management changes the business strategy

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Securitization

Double edged sword

August 25, 2016

If management discloses the effects of securitization versus bond financing, it will be a boon to shareholders

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Catchmark timber trust

Promises, promises

August 18, 2016

EBITDA is a sinful performance metric

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Depreciation

Castles in the sky

August 15, 2016

How depreciation expenses affect earnings

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Timber REITs

Bury your head in the sand

August 11, 2016

Focusing on the wrong key performance metric may lead to unintended results

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Hard money lending

Life lesson

August 8, 2016

A fund manager advises to study the past

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Excess MSR

Crapshoot

August 4, 2016

Investing in an esoteric asset class is tricky

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Decision tree

Heads or tails

August 1, 2016

Using a decision tree can reduce the emotional aspect of a real estate sale

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LaSalle hotel properties

Are times changin’?

July 28, 2016

When market value is unimpressed by higher earnings and improved operational efficiency

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Healthcare REITs

Senior living

July 25, 2016

Demographic trends win over regulatory scrutiny in the valuation of Healthcare REITs

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Brookdale senior living

Animals spirits

July 21, 2016

When operating at a loss, purchasing a competitor may not be the best course of action

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Hotel REITs

A gloomy landscape

July 18, 2016

Capital markets are skeptical of the lodging industry outlook

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DCT industrial trust

Let the good times roll

July 14, 2016

A threefold increase in market value results in quixotic expectations

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Private equity real estate funds

Breakfast at Tiffany’s

July 11, 2015

The managing director of a private equity real estate fund talks about Trump, history and why his fund focuses on retail properties

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Industrial REITs

Same same but different

July 7, 2016

Except for shared business objectives, industrial REITS are a heterogeneous collection of companies

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Private equity real estate funds

Timing is everything

July 4, 2016

To align the interest between partners, economic and corporate governance terms are often negotiated. But one issue is left out

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RAIT financial trust

Dazed and confused

June 30, 2016

Lacking earnings to support its ambitious scope of real estate activity, RAIT financial trust is relying on capital markets

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Commercial real estate indices

When cost outweighs benefit

June 27, 2016

Indices measure the performance of real estate over time. It is questionable how accurate the indices are

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Mortgage REITs

Perils of Leverage

June 23, 2016

Borrowing short term and lending long term is a tricky business model

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Bluerock residential growth

Oh, Dear!

June 20, 2016

Management cost is an all-important consideration

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Net asset value

Apples to oranges

June 16, 2016

Because valuing real estate at cost hides economic reality, net asset value analysis is paramount

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Office REITs

Balance sheet

June 13, 2016

Descriptive analysis of Office REITs finds the higher the yield, the higher the leverage.

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Funds from operations

Show me yours

June 9, 2016

Funds from operations is an industry standard to compare and evaluate REITs performance.

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Real Estate Investments Trusts

An Overview

May 6, 2016

The exposure to different type of real estate investment trusts offers benefits. But there are costs

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Global Trends

No Ordinary Disruption

June 2, 2016

Powerful trends are forcing industries to change. Companies should pay close attention

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Net Present Value

What it’s all about

May 30, 2016

Along with a required rate of return, after-tax cash flow is the cornerstone of valuation

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Internal Rate of Return

The Tower of Babel

May 26, 2016

Not having an absolute return metric is frustrating

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UrbanCorp is Sinking

Oy Vey

May 22, 2016

A Canadian developer finds Israel to be a lender of last resort.

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Capitalization rate

Three Methods to Calculate Capitalization Rate

April 25, 2016

Using Market extraction, band-of-investment, and the build-up methodology, will strengthen your cap rate analysis.

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Cost approach

Your property's top value

May 12, 2016

Repeatedly ignored, the cost approach is not valueless.

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Capitalization rate

Capitalization rate lacks details

April 29, 2016

An office building in Tigard, Oregon demonstrates that capitalization rates are insufficient to determine market value.

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Real estate and the Federal Reserve

One relationship says it all 2

May 19, 2016

No meaningful relationship between NAREIT index return and interest rates fluctuations

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Real estate and the Federal Reserve

One relationship says it all 1

May 16, 2016

A real estate mogul finds history a bore; and focuses on Fed actions instead.

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Value charachteristics

Real Estate Bulls

May 9, 2016

Six reasons why investing in real estate makes sense.

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Building types

How do different properties compare?

May 2, 2016

Real estate properties are not created equal.

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Due diligience

Mind Your Gap

May 6, 2016

Due diligence uncovers facts that reshape the deal.

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