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By the Numbers
The True Value
[July/August 2006]

Green Street Advisors’ compiled a chart comparing the fluctuation of actual share price premiums to net asset value (NAV) estimates for approximately 60 equity REITs, excluding the hotel sector. This chart illustrates that the highs and lows of REITs trading above or below their estimated NAV. For example, the technology craze at the turn of the century factored into REITs trading about 20 percent below NAV, making it a great time to invest in REITs. In recent years, however, share price premiums have remained in a fairly narrow range. On average, REIT share prices have traded 6.9 percent above NAV since 1993.

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