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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