Post by
garyreins on Nov 28, 2024 3:45pm
AM I WRONG ABOUT THIS THESIS?
Even though the concerns of resdential glut in US or weakning NOI growth is valid, and it may not be the best sector in 3-5 years, the fact that RES is still given a double multiple over whatever office/multi reit is, mitgates the downside risk.
So lets say HR curreently = 10x AFFO multiple
Splits in Landtower, industrial= 20x AFFO, 15x affo multiple, which is much higher price
Even if the res multiples come down quite a bit due to being unfavored, they will basically be a wash withi just no upside captured.
so lots of upside, little downside IMO