Dream Global Real Estate Investment Trust Tr Unit DUNDF

DRG FFO vs payout

[sspare]

Hi 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.

[maypeters]

Hi Sspae welcome and best wishes for your investments . . One should not use P/E for REITS for the simple reason for the simple reason that REITS which own buildings or properties can write off the deprectiation of the properties (which in turn will will show up as an expense in the Profit and Loss statement . .. . which in turn will turn a profit for the Q into a loss on paper - remember the

[sspare]

 

[bttmfischer]

maypeters,  thanks for the levelI info. Too bad it wa staken off by Stockhouse. It was a useful tool. About writing off the depreciation of real properties, it is an advantage, but when REITs dispose of the capital property,  it doeas not affect the capital gains or losses on them, I believe. Regardless, I still like DRG.UN.

[Tad]

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[sspare]

Thanks for pointing out the gap between cash distributions and AFFO is closing.  Your numbers for AFFO and cash distributions are encouraging (note: a tiny typo on the last one, should be a shortfall of  $69,000, so more in our favour- yes I own a few shares now!) So as you say, the tendency is positive... GLTA