Question: A market study has indicated that cap rates have compressed on all sectors of real estate recently. How will this affect FFO multiples in the

A market study has indicated that "cap rates" have "compressed" on all sectors of real estate recently. How will this affect FFO multiples in the REIT market?

a.

They are likely to have decreased due to market conditions

b.

They are likely to have increased due to market conditions

c.

The REIT market is separate from the private market and no FFO multiple change is likely

d.

FFO multiples have likely decreased due to capital market constraints rather than real estate market conditions

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