Are REITs actually cheap, or just down?

FFO exists because depreciation makes REIT earnings look terrible even when the buildings are fine. A REIT depreciates its properties on the income statement while the real assets often hold or gain value, so net income understates the cash the business throws off. FFO adds depreciation back and strips out gains on property sales. AFFO goes further and subtracts the recurring capex needed to keep the buildings leasable, which is the number I'd actually use.

As for what normal looks like, it varies enormously by sector, so a single benchmark won't help you. Compare a name to its own history and to its direct peers, never across sectors.

The rate sensitivity part isn't the same sentence said twice. Prices are down partly because higher rates raised the return everyone demands from real estate and made refinancing more expensive. So the cheapness and the risk share a cause, and if rates go up further, the cheap gets cheaper before it gets resolved. That's what I've been trying to get comfortable with, and I'm not there yet.

Twelve buys of 5k, broad REIT index fund, dividends reinvested, and then leave it alone. You lose a little expected return relative to going in at once, and you buy yourself a plan you'll actually stick to when the second month is red. I did the same thing and the only part I'd change is that I checked the balance far too often in year one.

Thatch, one thing to settle before month one is what account this sits in, because REIT distributions are usually taxed as ordinary income rather than at qualified dividend rates. Depends on your situation, so ask your tax preparer.

Before the monthly-versus-lump question I'd want to know your holding period. If it's ten years, the entry schedule barely matters and you're arguing about a rounding error. If it's three years, entry timing is most of your outcome and I'd think much harder about whether equities are the right container at all. Which is it for you, and what would make you sell early.

Contrary view since everyone here is agreeing. For 60k I'd rather own something I can influence. A REIT share means I take whatever the market's mood is on the day I sell, with no ability to change the property, the rents or the debt. My last flip cleared 41k on 60k of capital in seven months and every dollar of that came from work I controlled. Your post does say you don't want tenants or contractors, and that answer rules out my whole approach, so index fund and go run your business.