The current average price-to-funds from operations ratio of firms in the MSCI U.S. REIT index is 17.7, slightly higher than the long-run average of 15.7.
Lazard Asset Management said the premium is understandable, "given the still-supportive fundamental backdrop and better growth expectation for 2014 and 2015 earnings," in a research note published last month.
Vornado Realty Trust tops the list of REITs with the highest current price-to-FFO at 29.2, followed by Federal Realty Investment Trust (26.2) and Essex Property Trust (25.8).
