【cost of a cpap machine in canada】Is AEW UK Long Lease REIT Plc (LON:AEWL) A Healthy REIT?
AEW UK Long Lease REIT Plc is cost of a cpap machine in canadaa UK£72m small-cap, real estate investment trust (REIT) based in London, United Kingdom. REITs own and operate income-generating property and adhere to a different set of regulations. This impacts how AEWL’s business operates and also how we should analyse its stock. I’ll take you through some of the key metrics you should use in order to properly assess AEWL.
See our latest analysis for AEW UK Long Lease REIT
A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT’s main source of income from its portfolio of property, such as rent. FFO is a cleaner and more representative figure of how much AEWL actually makes from its day-to-day operations, compared to net income, which can be affected by one-off activities or non-cash items such as depreciation. For AEWL, its FFO of UK£2.4m makes up 82% of its gross profit, which means the majority of its earnings are high-quality and recurring.
LSE:AEWL Historical Debt January 1st 19
AEWL’s financial stability can be gauged by seeing how much its FFO generated each year can cover its total amount of debt. The higher the coverage, the less risky AEWL is, broadly speaking, to have debt on its books. The metric I’ll be using, FFO-to-debt, also estimates the time it will take for the company to repay its debt with its FFO. With a ratio of 8.2%, the credit rating agency Standard & Poor would consider this as aggressive risk. This would take AEWL 12.22 years to pay off using just operating income, which is a long time, and risk increases with time. But realistically, companies have many levers to pull in order to pay back their debt, beyond operating income alone.
Next, interest coverage ratio shows how many times AEWL’s earnings can cover its annual interest payments. Usually the ratio is calculated using EBIT, but for REITs, it’s better to use FFO divided by net interest. This is similar to the above concept, but looks at the nearer-term obligations. With an interest coverage ratio of 6.19x, it’s safe to say AEWL is generating an appropriate amount of cash from its borrowings.
I also use FFO to look at AEWL’s valuation relative to other REITs in United Kingdom by using the price-to-FFO metric. This is conceptually the same as the price-to-earnings (PE) ratio, but as previously mentioned, FFO is more suitable. AEWL’s price-to-FFO is 29.21x, compared to the long-term industry average of 16.5x, meaning that it is overvalued.
Next Steps:
As a REIT, AEW UK Long Lease REIT offers some unique characteristics which could help diversify your portfolio. However, before you decide on whether or not to invest in AEWL, I highly recommend taking a look at other aspects of the stock to consider:
Story continues
Valuation
: What is AEWL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The
intrinsic value infographic in our free research report
helps visualize whether AEWL is currently mispriced by the market.
Management
: Who are the people running the company? Experienced management and board are important for setting the right strategy during a volatile market. Take a look at
information on AEWL’s executive and directors here
.
Other High-Performing Stocks
: Are there other stocks that provide better prospects with proven track records? Explore our
free list of these great stocks here
.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
View comments
(责任编辑:Hotspot)
- MT Højgaard Holding A/S: Financial Calendar 2021
- Callon Petroleum Climbs 4% As 3Q Sales Surge 74%; Street Sticks To Hold
- 17 Tips To Live Comfortably Off Just a Social Security Check
- NetCents Technology Notches Record Transaction Volume, Again
- EPR Properties: 3Q Earnings Snapshot
- When Can We Expect A Profit From Asmallworld AG (VTX:ASWN)?
- EXCLUSIVE: Frédéric Arnault Gears Up for CEO Role at Tag Heuer
- Platinum Group Metals Ltd. Completes At-The-Market Offering
- Can You Imagine How Eagle Nice (International) Holdings's (HKG:2368) Shareholders Feel About The 96% Share Price Increase?
- Here is Why Growth Investors Should Buy Brinker International (EAT) Now
- Ambu A/S: Interim report for Q2 2019/20 and for the period 1 October 2019 to 31 March 2020
- Gaming platform Roblox acquires Imbellus assets ahead of IPO
- The Zacks Analyst Blog Highlights: Telenav, Forestar, Alpine Income Property Trust, Innovative Industrial Properties and MDU Resources
-
4 Top Momentum Stocks Powered by Driehaus Strategy
Investors who have the propensity to take higher risk can think of investing in momentum stocks to b ...[详细] -
Americans See Record Fall in Consumer Spending, Savings Soar
U.S. consumer spending dropped a record-breaking 13.6% in April, marking the steepest monthly fall s ...[详细] -
High-Yield ETF Rout Widens Gap With Benchmarks
(Bloomberg Opinion) -- Ever since the introduction of exchange-traded funds tracking the riskiest bo ...[详细] -
Pence will meet cruise industry officials Saturday on coronavirus
WASHINGTON, March 4 (Reuters) - U.S. Vice President Mike Pence said he would travel to Florida on Sa ...[详细] -
Portugal says unacceptable to block EU recovery funds
MILAN, Dec 4 (Reuters) - Portugal joined European Union countries condemning Poland and Hungary on F ...[详细] -
Suzan Craig and Tahi Restore Nature and Make 100 Percent Natural, Genuine Honey
Tahi Honey Will Soon Be Available in the United StatesManuka honey is gathered from the Manuka tree’ ...[详细] -
Goodfood’s Strong Growth Continues as Its Active Subscribers Count Increases 33% to Reach 306,000
MONTREAL, Dec. 03, 2020 (GLOBE NEWSWIRE) --Goodfood Market Corp. (“Goodfood” or “the Company”) (TSX: ...[详细] -
NEW YORK, NY / ACCESSWIRE / March 3, 2020 /Bronstein, Gewirtz & Grossman, LLC notifies investors tha ...[详细]
-
NeoPhotonics (NPTN) Misses Q3 Earnings Estimates
NeoPhotonics (NPTN) came out with quarterly earnings of $0.11 per share, missing the Zacks Consensus ...[详细] -
Is Burlington Stores (BURL) a Solid Growth Stock? 3 Reasons to Think Yes
Growth investors focus on stocks that are seeing above-average financial growth, as this feature hel ...[详细]
Lam Research unveils improved tool to make 3-D chips for phones, devices
Organic elderberries recalled over possible salmonella contamination
- What Kind Of Shareholders Hold The Majority In Select Bancorp, Inc.'s (NASDAQ:SLCT) Shares?
- TUI Will Cut Budgets, Freeze Hiring to Deal With Coronavirus Spread
- GBP/JPY Price Forecast – Pound Continues to Grind Away at Resistance
- Guggenheim Energy & Income Fund Announces Tender Offer
- The Global Enterprise Very Small Aperture Terminal (VSAT) Market is expected to grow by $ 1.82 bn during 2020-2024 progressing at a CAGR of 7% during the forecast period
- CMA CGM Donates 200,000 Face Masks
- What Kind Of Shareholders Hold The Majority In Select Bancorp, Inc.'s (NASDAQ:SLCT) Shares?