Question: Please answer the question below using no more than 500 words. National Property Trust (National) is a REIT specializing in the acquisition and management of
Please answer the question below using no more than 500 words. National Property Trust ("National") is a REIT specializing in the acquisition and management of warehouses. Your firm Blue Ocean Advisors is reviewing its financial statement and considering the purchase of shares. Using the attached Excel template with the financial statement, answer the following questions: 1. Ratios Earnings per share (EPS): (Net income) / (Shares outstanding) Funds from operations (FFO): (Net income) + (Depreciation and amortizotion)/(Shares outstanding) Which is higher-National's EPS or FFO? 2. FFO and Valuation - What is the book value per share: (Shareholders equity) / (Shares outstanding) - Market research has shown you that investors are willing to pay a multiple of 12 FFO for comparable REITS. Based on your analysis, what would then be National's expected market share price? Which is higher, the book value or market value
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