Methodology
Valuation Models
Our NAV-based pricing model has served as our primary tool for valuing REITs since 1989. The model is based on the logic that REIT valuation can best be assessed by analyzing separately the two key components of value: 1) the net value of the in-place assets and 2) the present value of future investment opportunities. For a full description of how we calculate NAV and the workings of this model, click here.
Discounted Cash Flow Model
We also utilize a discounted cash flow (DCF) approach toward valuation. While the inputs vary substantially versus our NAV-based model, the outputs are typically quite similar. The DCF model provides a "sniff-test" for the output arising from the NAV-based approach.