During our class, one student asked the following question: How is real estate performing in the current recession? The answer is that it depends which real estate sector you are looking at. We have been using a Price Tracker file to chart the pricing action of various REIT stocks from pre-Covid times to the present. The sectors that serve e-commerce, like industrial, are performing very well. Data centers are also doing well because of the growing role of technology in business and society. REITs based on traditional business models, like brick and mortar retail, have been doing poorly.

True

False

When a REIT stock is trading for less than its liquidation value, the stock is said to be trading at a discount to Net Asset Value?

True

False

Investors like REITs for the current income they produce. Knowledgable real estate investors know that leasing commissions and capital expenditures take a big bite out of cash flows. What is the measure of cash flow for a REIT that is net of capital expenditures?

		Fund from Operations
		Adjusted Funds from Operations
		Net Operating Income
		Cash Flow after Debt Service