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5.87728234464963E-05 -0.000137136588041676 0.000391818822976233 0.00186113940913719 0.000176318470339377 0.00201786693832778 0.0018807303502861 0.00209623070292296
Stock impact report

Cap Rates Reveal Opportunistic REIT Property Sectors [Seeking Alpha]

S&P Global Inc. (SPGI) 
Last s&p global inc. earnings: 4/28 07:10 am Check Earnings Report
US:NYSE Investor Relations: stocktwits.com/symbol/s
Company Research Source: Seeking Alpha
Getty Images Cap rates are one of the best indicators of forward returns in REITs. It is not 1 for 1 in the sense that a 5% cap rate does not translate to a 5% forward return, but a higher cap rate at purchase will, all else equal, result in higher forward returns. Generally speaking, it is a bad time to buy REITs when they are trading at low implied cap rates and a good time to buy when they are trading at high implied cap rates. We will show this has borne out in recent history, but let us first define implied cap rate as this is a term that is rarely used outside of dedicated real estate professionals. A cap rate is the NOI of a property divided by its price. The implied cap rate of a publicly traded stock is the NOI of the properties owned by that company divided by the enterprise value (including debt) of the company. Each individual REIT has its own implied cap rate, but today we will be looking at the median implied cap rates of REITs as an entire sector and then bre Show less Read more
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