Debt to EBITDA is a financial metric that measures a company's total debt in relation to its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio provides insight into a company's ability to pay off its incurred debt using its operational earnings, highlighting financial health and leverage. In the context of REIT valuation metrics, it is particularly relevant as it indicates how much debt a REIT has compared to its earnings potential, helping investors assess risk and return.
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