Assuming 3.5% is correct and the magic number: Add 2%-3% for risk adjusted returns, which for many REITS is starting to stack up Compare risk free rate, in this case 3.5% add risk 2-3% and we get risk adjusted returns. Obviously more risky the REIT asset class, the higher the risk premium.
Then compare these numbers to current cap rates.
HCW Price at posting:
$1.06 Sentiment: Buy Disclosure: Held
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