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Homework: REITs and RE Investment Performance Assignment
eBook
Appraisal
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Problem 21-1
TOSHIBA
You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an
initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street
asked to prepare a financial analysis of the REIT.
Advisors, is an investment management company that is considering the purchase of National Property Trust shares. You have been
National Property Trust
Panel A. Operating Statement Summary
Net revenue
Less:
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Interest expense*
Net income (loss)
*At 8% interest only.
Operating expenses
Depreciation and amortization
General and administrative expenses
Management expense
Income from operations
Less:
vo.
DID VOID
OID VO
Panel B. Balance Sheet Summary
Assets
Cash
Rents receivable
Properties @ cost
Less: Accumulated depreciation
Properties-net
Total net assets
Short term
Mortgage debt*
Total
Shareholder equityt
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Liabilities
Total liabilities and equity
"At 8% interest only.
110,000,000 shares outstanding.
VOILL
$ 119,000,000
Al
47,600,000
41,000,000
7,900,000
4,900,000
17,600,000
6,400,000
$ 11, 200,000
$ 53,400,000
4,400,000
890,000,000
469,000,000
421,000,000
$ 478,800,000
Required:
National Property Trust with other REITS.
a. Develop a set of financial ratios that will provide Blue Street Advisors with useful information in the evaluation and d comparison of
b. Your research also indicates that the shares of comparable REITS specializing in warehouse acquisitions in the same regions are
selling at dividend yields in the range of 8 percent. Price multiples for these REITS are about 12 current FFO. What price range does
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$ 167,800,000
80,000,000
247,800,000
231,000,000
$ 478,800,000
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Homework: REITs and RE Investment Performance Assignment i
5
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eBook
Ly Appraisal X
References
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ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%25
Panel B. Balance Sheet Summary
Assets
Cash
Rents receivable
Properties @ cost
Less: Accumulated depreciation
Properties-net
Total net assets
Liabilities
Short term
Mortgage debt*
Total
Shareholder equityt
Total liabilities and equity
*At 8% interest only.
†10,000,000 shares outstanding.
TOSHIBA
Required A
Required B
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MAGANDA
Required:
National Property Trust with other REITs.
a. Develop a set of financial ratios that will provide Blue Street Advisors with useful information in the evaluation and comparison of
b. Your research also indicates that the shares of comparable REITs specializing in warehouse acquisitions in the same regions are
this suggest for National shares?
selling at dividend yields in the range of 8 percent. Price multiples for these REITs are about 12 current FFO. What price range does
properties owned by Blue Street Advisors?
c. What is the NAV for National Property Trust assuming that a blended capitalization rate of 10 percent would be applicable for the
Complete this question by entering your answers in the tabs below.
Required C
$ 53,400,000
4,400,000
890,000,000
469,000,000
421,000,000
$ 478,800,000
$ 167,800,000
80,000,000
< Required A
247,800,000
231,000,000
$ 478,800,000.
Your research also indicates that the shares of comparable REITS specializing in warehouse acquisitions in the same regions
are selling at dividend yields in the range of 8 percent. Price multiples for these REITS are about 12 current FFO. What price
range does this suggest for National shares? (Round your intermediate calculations and final answers to 2 decimal places.)
Price range from
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B
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