GREY:DUNDF - Post by User
Post by
sspareon Aug 12, 2016 11:11am
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Post# 25135633
DRG FFO vs payout
DRG FFO vs payoutHi all,
I'm very new to investing, especially with regard to REITs. With regard to valuation, I understand that one should look at P/AFFO instead of P/E. Very well. But what about distribution sustainability? In order to gauge distribution sustainability, should one not consider AFFO vs distribution? Keeping that in mind, let us consider today's numbers off the cuff:
From section 1:
AFFO: 22,675
Distributions: 22,744
This is over 100%! Is there something I'm missing here? At first glance they need to grow their income in order to continue the distribution at this level, right? Please bear in mind I'm new at this.
Thanks for any comments.