- Dividend University
- DIV 203
REITs and BDCs
REITs own property and BDCs lend to private companies, and both must pass nearly all of their income to shareholders, which is why they yield so much more than ordinary stocks. This course covers how each one works, the different kinds, the numbers that matter (FFO and AFFO for REITs, net investment income and NAV for BDCs), the ETFs that hold them, and the risks hiding behind the big yields.
- Explain why REITs and BDCs pay out most of their income
- Judge a REIT on FFO, AFFO and leverage instead of earnings
- Judge a BDC on NII coverage, NAV per share and non-accruals
- Tell equity REITs from mortgage REITs, and internal from external managers
Syllabus
- 110 min
REITs: Owning Real Estate for the Rent
Companies that own buildings and must pass most of the rent on to you.
- 210 min
The Different Kinds of REITs
Apartments, warehouses, cell towers, data centers: what each kind of REIT owns and what can go wrong.
- 312 min
How to Analyze a REIT: FFO, AFFO and More
Why earnings mislead for property owners, and the numbers to check instead.
- 49 min
Mortgage REITs
REITs that own loans instead of buildings, and why their yields are so high.
- 58 min
REIT ETFs
Owning a slice of hundreds of landlords in one ticker.
- 69 min
BDCs: Lending to Small Businesses for Income
Listed lenders to private companies that pass nearly all their interest income to shareholders.
- 711 min
How to Analyze a BDC
Net investment income, NAV per share and non-accruals: reading a lender's report card.
- 88 min
Internally vs Externally Managed BDCs
Who runs the lender, what they're paid, and why it shows up in your return.
- 97 min
BDC ETFs and Funds
A basket of lenders in one ticker, and the strange fee figure that comes with it.