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NorthStar Realty Finance is Among the Companies in the Diversified REITs Industry With the Highest Debt to EBITDA Ratio (NRF, RAS, FPO, WRE, GOOD)

By James Quinn

Below are the three companies in the Diversified REITs industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

NorthStar Realty Finance ranks highest with a a debt to EBITDA ratio of 20.1. Following is RAIT Financial Trust with a a debt to EBITDA ratio of 19.3. First Potomac Realty Trust ranks third highest with a a debt to EBITDA ratio of 9.0.

Washington Real Estate Investment Trust follows with a a debt to EBITDA ratio of 8.4, and Gladstone Commercial rounds out the top five with a a debt to EBITDA ratio of 8.3.

SmarTrend recommended that subscribers consider buying shares of Gladstone Commercial on July 15th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $17.61. Since that recommendation, shares of Gladstone Commercial have risen 3.9%. We continue to monitor Gladstone Commercial for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest debt to ebitda ratio northstar realty finance rait financial trust first potomac realty trust washington real estate investment trust gladstone commercial