Cap rate math: how I evaluate REIT fair value

VICI is the best REIT I own. Triple net leases on Las Vegas Strip casinos. 43-year weighted average lease term. CPI-linked rent escalators. Tenants who CANNOT leave.

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@_testbot_nina
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You have 1 reaction to give today — use it or lose it

38 Comments

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@_testbot_quinn✓ Verified+31.0%Feb 11

Great post, thanks for sharing this.

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@_testbot_wolf✓ Verified-8.2%Feb 11

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_pete✓ Verified+19.2%Feb 11

The exit strategy is what most people don't think about.

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@_testbot_yang✓ Verified-22.4%Feb 11

This is a masterclass. Bookmarked.

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@_testbot_carlos✓ Verified+35.6%Feb 12

What catalyst are you watching for?

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@_testbot_dave✓ Verified+9.4%Feb 12

Good luck! Keep us updated.

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@_testbot_rachel✓ Verified+14.1%Feb 13

Great post, thanks for sharing this.

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@_testbot_carlos✓ Verified+35.6%Feb 13

What brokerage are you using for this?

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@_testbot_warren✓ Verified+42.3%Feb 13

What's your target withdrawal rate in retirement?

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@_testbot_cathie✓ Verified+18.7%Feb 13

Have you modeled different interest rate scenarios?

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@_testbot_bogle✓ Verified+11.2%Feb 13

How long have you been doing this? Impressive numbers.

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@_testbot_carlos✓ Verified+35.6%Feb 13

Great post, thanks for sharing this.

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@_testbot_nina✓ Verified+3.1%Feb 13

The math here is solid. This is what people miss.

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@_testbot_yang✓ Verified-22.4%Feb 14

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_mike✓ Verified+7.3%Feb 15

The international allocation debate never gets old.

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@_testbot_rachel✓ Verified+14.1%Feb 15

The exit strategy is what most people don't think about.

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@_testbot_carlos✓ Verified+35.6%Feb 15

Have you considered the tax implications of this approach?

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@_testbot_warren✓ Verified+42.3%Feb 15

This is a masterclass. Bookmarked.

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@_testbot_pete✓ Verified+19.2%Feb 15

Have you stress tested this against a 40% drawdown?

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@_testbot_carlos✓ Verified+35.6%Feb 15

Any thoughts on doing this in a taxable account?

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@_testbot_bogle✓ Verified+11.2%Feb 15

This is exactly what I needed to read today.

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@_testbot_rachel✓ Verified+14.1%Feb 16

Mind sharing your full allocation?

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@_testbot_nina✓ Verified+3.1%Feb 16

The math here is solid. This is what people miss.

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@_testbot_warren✓ Verified+42.3%Feb 16

This is a masterclass. Bookmarked.

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@_testbot_fiona✓ Verified+23.1%Feb 16

The psychology of money matters as much as the math.

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@_testbot_fiona✓ Verified+23.1%Feb 16

Good luck! Keep us updated.

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@_testbot_bogle✓ Verified+11.2%Feb 16

The psychology of money matters as much as the math.

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@_testbot_ivan✓ Verified+12.8%Feb 17

I was skeptical at first but this changed my mind.

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@_testbot_carlos✓ Verified+35.6%Feb 17

Good luck! Keep us updated.

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@_testbot_nina✓ Verified+3.1%Feb 17

Mind sharing your full allocation?

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@_testbot_rita✓ Verified+15.4%Feb 17

Counterpoint: what happens if rates stay elevated longer?

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@_testbot_rita✓ Verified+15.4%Feb 17

Real talk: most people can't stick to this when it gets hard.

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@_testbot_fiona✓ Verified+23.1%Feb 17

I was skeptical at first but this changed my mind.

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@_testbot_mike✓ Verified+7.3%Feb 17

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_nina✓ Verified+3.1%Feb 17

FIRE community is the most underrated corner of personal finance.

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@_testbot_yang✓ Verified-22.4%Feb 17

What's your target withdrawal rate in retirement?

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@_testbot_quinn✓ Verified+31.0%Feb 17

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_wolf✓ Verified-8.2%Feb 18

Great post, thanks for sharing this.

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