1. Price-to-book (P/B): or how expensive is the real estate I'm buying. Less than 1 cheaper than the last valuation. Here we see the historical P/B of REIT stocks (maximum at 1.6).
2. Interest coverage: EBIT/interest expenses or how easily the REIT can pay the interest expenses with its earnings. More than 5 is a very safe figure.
3. Total-debt-to-equity: or what the leverage is. For instance, 50% or low is considered conservative: 66 equity, 33 debt (think of a mortgage).
3. Total-debt-to-equity: or what the leverage is. For instance, 50% or low is considered conservative: 66 equity, 33 debt (think of a mortgage).
