BiggerPockets Money Podcast · Tuesday, August 11, 2026
Determining the precise Net Asset Value (NAV) for REITs can be challenging, especially for REITs holding a large number of diverse properties. Unlike liquid stocks, real estate assets like office buildings in specific markets are not easily marked to market, making accurate valuation complex. While an exact calculation might be elusive, a reasonable estimate can still indicate undervaluation.
“But in orderTo compute a net asset value opinion, I have to understand every building in each REIT's portfolio. And then mark it to market. And these things are not marked to market, right?”
“It's a lot of work to calculate these net asset values. ... the value of their assets on balance sheet is historic cost minus the accumulated depreciation. So if you're just looking at balance sheet figures, that's not going to get you far, those are not reflected at all of the true market value of the properties.”
“But the good thing is that this doesn't have to be an exact science. You will never manage to determine the exact net asset value to the exact number, but even if you have just a good estimate, you can often tell if a REIT is undervalued or not.”