A Discount to NAV Still Needs Underwriting
Published on: 23/09/2026
A Discount to NAV Still Needs Underwriting
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A Discount to NAV Still Needs Underwriting

The federal funds rate has fallen 175 basis points since September 2024. The 10-year Treasury has risen 112 basis points over the same period. If lower rates were supposed to compress cap rates, the math already broke that theory.

Why the balanced case gives JLL 50%, EQT 30%, Cottonwood 20%, and FS 0%

In May, EM Capital’s published Q2 model placed self-storage in Underweight: a 5.33% entry cap, a 6.8% forward unlevered return, a 9.5% hurdle, and negative 2.7 percentage points of Cap-Rate Alpha.