skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. ZRE: Would you be able to tell me the trailing and forward P/E for XRE and ZRE? [BMO Equal Weight REITs Index ETF]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Would you be able to tell me the trailing and forward P/E for XRE and ZRE? What are your general thoughts for REITs over the next few years?
Thanks!
Asked by Grant on March 04, 2024
5i Research Answer:

Forward P/E is not a disclosed measure for many ETFs just because they hold so many secuities. ZRE does not disclose any multiples. Trailing P/E for XRE is 15.8x while trailing P/B is 0.78x. For REITs also, earnings multiples are not the primary valuation metric used since investors are typically more focussed on the cash flows that are paid out. Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) are better measures of performance for REITs. 

We do like the outlook for REITs and think that as rates stabilize and even decline, the sector should benefit. Out of the two REITs mentioned we like XRE better due to the bigger size and slightly lower expense ratio.  

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.