Finding The True Value Of REIT Assets

Thanks to the  enhanced ability of computers to crunch numbers, and the large, more sophisticated databases based on publicly traded REITs, investors can now effectively invest directly in 29,000 properties held by REITs nationwide, according to MIT professor David Geltner, who developed the technology with NAREIT and FTSE. They introduced The PureProperty Index a year ago and are now fine tuning it. (And we couldn't even pass calculus the first time.) The team developed algorithms that separate out a REIT's debt to determine the underlying value of the properties and construct portfolios that have pure exposures to property segments such as Northeast office buildings or Southern apartment properties, David tells us.

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