RE:A little much yeah? Affo can fluctuate with incoming economic data. Affo is an attempt to "normalize" funds from operation on a forward looking basis. The problem is they are "normalizing" forward looking cash flow based on past results. In other words, they are using lagging data to try to extrapolate into the future.
Can Affo multiples contract in a recessionary environment if Cre exposed reits get pummeled? The answer is yes! Generally speaking, the entire industry gets re-rated and those with more exposure get hit the hardest.
Now is the time to be patient.