BiggerPockets Money Podcast · Tuesday, August 11, 2026
Traditionally, REITs trade at a premium to their Net Asset Value (NAV) due to benefits like liquidity and professional management. However, following a recent market downturn, many REITs are now trading at significant discounts (20-50%) to their NAV. This valuation gap is driving recent merger and acquisition activity as larger firms see value in acquiring these assets.
“basically over the long run historically, REITs have typically traded at a small premium to the net asset value on average during most times.”
“However, today, following this bear market with REIT share prices dropping quite significantly, now you have lot of REITs trading at 20, 30, up to 50% discount to the value of their real estate net of debt.”
“And so that's a reason also by the way why there's been so many REIT buyouts lately. We've had, I think 10 plus buyouts this year alone...”