Nov. 2 at 11:34 PM
$BRT Even though this multifamily REIT will most likely have to cut their dividend by at least 20%, I'm still bullish on this REIT. Currently trading at a 7.62% implied cap rate, this is extremely cheap. Dividend is covered if you look at FFO, but after adjusting for recurring capital expenditures, a 100% payout ratio is only about
$0.80 per year. I estimate a 11.6% IRR, assuming a 2.0% same-store NOI CAGR over the next decade, a slight drop in SG&A margin, and a 7.0% exit cap rate.
