Problem 21-1

You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street Advisors, is an investment management company that is considering the purchase of National Property Trust shares. You have been asked to prepare a financial analysis of the REIT.

National Property Trust
Panel A. Operating Statement Summary
Net revenue	$ 111,000,000
Less:
Operating expenses	44,400,000
Depreciation and amortization	33,000,000
General and administrative expenses	7,100,000
Management expense	4,100,000
Income from operations	22,400,000
Less:
Interest expense*	6,400,000
Net income (loss)	$ 16,000,000

*At 8% interest only.

Panel B. Balance Sheet Summary
Assets
Cash	$ 52,600,000
Rents receivable	3,600,000
Properties @ cost	810,000,000
Less: Accumulated depreciation	461,000,000
Propertiesnet	349,000,000
Total net assets	$ 405,200,000
Liabilities
Short term	$ 102,200,000
Mortgage debt*	80,000,000
Total	182,200,000
Shareholder equity	223,000,000
Total liabilities and equity	$ 405,200,000

*At 8% interest only. 10,000,000 shares outstanding.

Required:

a. I am trying to find the ROC and Cash Retention per Share.

Here is what I've found so far:

EPS: 1.6

NOI: 5.54

FFO: 4.90