Agree to Disagree: NAV Dispersion in REITs

Forthcoming in Journal of Real Estate Finance and Economics

38 Pages Posted: 24 Feb 2020

See all articles by Mariya Letdin

Mariya Letdin

Florida State University

Stace Sirmans

affiliation not provided to SSRN

G. Stacy Sirmans

affiliation not provided to SSRN

Date Written: January 27, 2019

Abstract

This is the first study to analyze REIT Net Asset Value analyst coverage and dispersion. We find that NAV analyst coverage has a positive relationship with REIT value and a negative relationship with REIT volatility. Subsequently we analyze NAV analyst estimate dispersion and find that it has a positive relationship with REIT leverage and volatility. We break down our sample by property type and find that retail REITs have the greatest NAV coverage and hospitality REITs have the greatest NAV analyst dispersion. Finally, we compare the significance of NAV forecast dispersion to earnings (FFO) forecast dispersion. We find that NAV dispersion has a significant negative relationship with REIT value whereas FFO dispersion is not found to have a significant relationship.

Suggested Citation

Letdin, Mariya and Sirmans, Stace and Sirmans, G. Stacy, Agree to Disagree: NAV Dispersion in REITs (January 27, 2019). Forthcoming in Journal of Real Estate Finance and Economics, Available at SSRN: https://ssrn.com/abstract=3526495

Mariya Letdin (Contact Author)

Florida State University ( email )

College of Business
Tallahassee, FL 32306
United States

Stace Sirmans

affiliation not provided to SSRN

G. Stacy Sirmans

affiliation not provided to SSRN

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