see this question on REIT
An analyst gathers the following information for two REITs:
P/NAV** P/AFFO AFFO Payout Ratio Est. annual AFFO growth** REIT A 98% 12.8 X 50% 4.0% REIT B 101% 13.0 X 90% 3.5%
All else being equal, if both REITs have a 10 percent rate of return on retained and reinvested cash flows, which of the REITs is most attractively priced?
Can someone take me through why B is the right answer?
Also the whole Alternative Investment to me is like a huge blur, how much do we need to know?