Differences in leverage as measured by the current market value of a real estate portfolio versus its book value may lead Moody’s to consider a small number of rating downgrades among U.S. REITs. In a new report, Moody’s says it has identified a number of REITs across the major REIT sectors whose leverage based on market value exceeds their leverage based on book value by a meaningful amount.

For the first time in several years, REIT portfolio book values for several issuers exceed their market values by a significant margin – Moody’s Vice President Chris Wimmer.