Whiterock Real Estate Investment Trust T.WRK.DB.K

white rock reit AFFO

[canadafan]

most REITs from what I can see use slightly different calculation of the term "AFFO"
which is why they all disclose AFFO is a non-standard method of accounting.
If anyone used standard accounting measures like P/E, net profit etc.
Most REITs would not even make the chart.
The hard part then becomes understanding the REIT business:
Is it a realestate play , like many believe ? At the whim of property values?....Not in my opinion.
Is it a managemnet business , like a fund of funds? again not so much.
REITS make $$$ by collecting rents at a return higher than it costs to keep those buildings open.
The complication comes into the calculation when depreication is calculated.Growing REITs have a hard time staying ahead of the depreciation.
In contrast more mature REITS show net profits ( after deductions etc) becuase the depreciation levels have slowed and rents have come up.
Exact same modle to anyone whom own even a simple renatl property or duplex.They show a loss for many years, all he while building equity etc.
Eventually if no new properties are bought the water catches up to the boat and a net profit must be show.
REITS have added elementsof complication like management fees, buys & sells of properties.
Having said all that:  with White Rock REIT.
Recently 3 separate analyts have come on-side to agree on a $16.25-$16.50 price range.
If you read the bio of Jason Underwood, WRK is still small potatoes for his potential. He said back in the start-up year, that WRK will grow to be a billion $$ company. I Have spoke to him over the years and trust he still has that desire to do that.
The most significant thing in the last analyst report is that they predict to see wrk as a mid-cap reit in the near term.
When they get to that, you will not see the price yeild/price premium you have today. The industry average is like 8%, they are at 11%.
WRK IMHO still has 30% upside before they are in the trading range of the rest.
Slow and steady and distribution each month, what more could anyone ask for?

[baudelaire]

I'm still working on depreciation and amortization with respect to AFFO, or in other words, is that cash really there and available for distribution?  Basically, I look at a WRK acquisition that says the property is well maintained and in need of very little capital expenditure because, to use a real life example, over $20-million of "improvements" have been done during the last

[canadafan]

Vrey interesting analysis and even "it" requires reading a few times which I did.A daunting taks to dig & shuffle through the many scinarios and try to interpret the value of each deal etc.The understanding of REITS in general could be a learning of itself.To get specific into one REIT takes things deeper and then again  into specific deals whithn a REIT becomes an overwhelming