Mail - To X → C 7 5 LO W Homework: REITs and RE Investment Performance Assignment points Appraisal X ezto.mheducation.com/ext/map/index.html?_con=con&external_browse Problem 23-3 $52 million $502 million $22 million $384 million annotate x LU Homewo X A commercial real estate investment fund must report its quarterly investment performance to investors. A summary of its (1) beginning and end-of-quarter assets and equity and (2) cash inflows and outflows during the quarter are as follows: Beginning of Quarter Cash Market value of props Other Investments Fund debt TOSHIBA During Quarter NOI from operations Paid management fees Distributions to investors Investor contributions Property acquisitions Property dispositions Other investments will earn 4% interest (1% per quarter) and property debt will be at a 6% rate (1.5% per quarter). The properties were appraised at the end of the quarter for $657 million. Assume any interest on short-term investments is offset by interest paid on short-term debt. Required: a. What would be the beginning equity value? b. What would be the ending equity value (MVEE)? what would be the quarterly return (IRR)? c. Assuming that all cash flows from operations, equity contributions, acquisitions, and distributions occurred at the end of the quarter. d. Assume that all cash distributions to investors occurred equally in 30-day intervals during the quarter. (Investor contributions still occur at the end of the quarter.) What would be an approximation to the IRR using the Modified Dietz approach? before fees? (Investor contributions still occur at the end of the quarter.) e. Assume that all cash distributions to investors occurred equally in 30-day intervals during the quarter. What would the return be property level? (Investor contributions still occur at the end of the quarter.) 1. Assume that all cash distributions to investors occurred equally in 30-day intervals during the quarter. What would be return at the Required B Complete this question by entering your answers in the tabs below. Type here to search Required C Required D $10 million $2 million $25 million $202 million $177 million $27 Answer is not complete. % M Question X (Required E Check my work mode: This shows what is correct or I Required E Required F Istribution (Investor Real answer to 2 decimal places.) to investors occurred equally in 30-day intervals during the quarter. What would be return ibutions still occur at the end of the quarter) (Do not round intermediate calculations. Himo < Pray of 7 la N

Fig: 1