i have a presentation in my real estate class, on REIT'S(real estate investment trusts.) i need to know good ways to present the powerpoint presentation. And good examples. Because another group did the same thing..and we have to top then. So what would be a good way to make it a better presentation.
It is critical that you focus valuation on FFO and AFFO. Clearly, you want a measure of financial performance that is not distorted by gains on sales or overly harsh depreciation. Good Luck From Invest in REITs website: The REIT industry also uses Funds From Operations (FFO) as a supplemental measure of a REIT’s operating performance. NAREIT defines FFO as net income (computed in accordance with GAAP) excluding gains or losses from sales of most property and depreciation of real estate. When real estate companies use FFO in public releases or SEC filings, the law requires them to reconcile FFO to GAAP net income. Many real estate professionals as well as investors believe that commercial real estate maintains residual value to a much greater extent than machinery, computers or other personal property. Therefore, they view the depreciation measure used to arrive at GAAP net income as generally overstating the economic depreciation of REIT property assets and the actual cost to maintain and replace these assets over time, which may in fact be appreciating. Thus, FFO excludes real estate depreciation charges from periodic operating performance. Many securities analysts judge a REIT’s performance according to its Adjusted FFO (AFFO), thereby deducting certain recurring capital expenses from FFO.
