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Real Estate

REIT Sector Primer

Equity REIT primer with an Excel valuation model. Covers property economics, FFO and AFFO, NAV, cap rates, leverage and peer comparison.

15 Sections 37 Pages PDF + Excel

PDF Only

The full primer in PDF format

£25 / ~$32
  • ✓ 37-page sector primer
  • ✓ Worked valuations
  • ✓ Screening thresholds
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Excel Model

Plug-and-play valuation template

£45 / ~$58
  • ✓ Pre-built valuation model
  • ✓ Sensitivity tables
  • ✓ Scenario toggles
Buy Model - £45
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PDF + Model

Everything you need in one package

£59 / ~$76 £70
  • ✓ 37-page sector primer
  • ✓ Valuation model (.xlsx)
  • ✓ Save £11 vs buying separately
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Complete Real Estate Library

Three primers, three Excel models

Equity, Mortgage, and Infrastructure & Digital REITs. Everything at ~25% off

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Inside the primer

The 15-section contents, a worked valuation page, and the Excel dashboard.

Section 08, the Consolidated DCF Output: three-segment gross asset value bridged to NAV per share of $22.87 after net debt and preferred.

Table of Contents

  1. 01 How Equity REITs Make Money
  2. 02 Listed Equity REIT Types
  3. 03 Stabilised Assets, Development and the Value Ladder
  4. 04 Segments and Sub-Markets
  5. 05 Revenue Drivers: Generic NOI Build
  6. 06 Cost Structure: NOI to FFO and AFFO
  7. 07 Valuation Frameworks
  8. 08 Worked Example: Multi-Period Property NAV Engine
  9. 09 Worked Example: FFO and AFFO Bridge
  10. 10 Applied Cases: Industrial, Multifamily and Storage
  11. 11 Applied Cases: Retail, Net Lease and Senior Housing
  12. 12 Leverage, Dividends and External Growth
  13. 13 Operating Metrics and Screening
  14. 14 Risks, Benchmarks and Industrial vs Office
  15. 15 Mortgage REIT Contrast, Glossary and Cheat Sheet

37 pages · 15 sections · 2 worked examples

The Excel model

The model's Dashboard: NAV per share, premium/discount to price, P/FFO, portfolio implied cap, AFFO payout and dividend yield on one screen.

Educational material for professional use. This primer and its model are not investment advice or a recommendation to buy or sell any security, and they are not personalised. Worked valuations use illustrative calibrations, not fair-value estimates for any company.

Equity REITs own operating property, collect rent, and pay most taxable income out as dividends. Retained earnings are scarce, so growth is funded in capital markets priced every quarter. Valuation sits on two lenses: what the portfolio is worth through NAV and capitalisation rates, and what the market pays for distributable cash through FFO, AFFO and P/FFO. A generic industrial DCF or book-value screen misses that chain; property type sets the lease structure and which lens leads before you open a filing.

The primer maps issuer types and the value ladder from stabilised assets through development, then builds rent into NOI and NOI into FFO and AFFO, with NAV and earnings multiples on the same rate floor. Two worked examples carry the method: a multi-period property NAV engine and an FFO/AFFO bridge. Applied cases then run the framework across industrial, multifamily, storage, retail, net lease and senior housing, before leverage, dividends, operating metrics and screening.

Free guides on the site unpack the individual pieces so you can revise one concept without reopening the full PDF; research profiles apply the same screens to filed names. The companion Excel model has thirteen sheets, from the per-property NAV engine through an FFO/AFFO bridge to a screen, with the rate and cap-rate assumptions on one sheet, so the property-level build re-prices whatever equity REIT you load into it.

Sheets: Quick Start, Instructions, Assumptions, Property 1, Property 2, Property 3, Consolidated, Cap Rates, Leverage, FFO-AFFO Bridge, DDM, Sensitivity, Dashboard.

See this methodology applied to a real company:

Prologis (PLD) →