Leah Kelvin
Active member
To manage REITs, one must study investment tactics, financial soundness and management. Measuring progress requires following metrics such as FFO, dividends or occupancy rates. Therefore, we need to know about market trends, interest rates and regulatory changes so as to make informed decisions. Stability of a dividend payout can be determined by comparing it with an average rate within the industry besides reviewing them against sustainability. Before investing in any REIT conducting due diligence is necessary for understanding their portfolios among other things like occupancy rates and market conditions. Financial reports should be monitored regularly together with earnings releases which are used for evaluating a REIT’s cash flow as well as its valuation. Keeping up to date with news concerning real estate industries alongside doing some research in this field will help us identify various risk factors while at the same time exposing ourselves towards different opportunities available in the industry.
