QUESTION 3: MULTIPLE CHOICE 2.5 POINTS. EACH-.TOTAL 50.POINTS 1. RE investors with the most conservative risk appetites wol 'd likely invest in: a. Crated corporate bonds and unrated CMBS debt b. Investment grade corporate bonds and B piece CMBS debt C. Low per cent LTV first mortgage secured real estate loans and investment grade CMBS securities d. A core RE Fund and a non-investment grade REIT high yield bond e. ARE opportunistic fund and non-investment grade CMBS securities 2. Income oriented investors invest in REITs because a. Of the statutory requirement to pay dividends at 90% of FFO b. Of confidence that they payout consistently growing dividends typically with a positive spread over 10 year U.S. Government bonds C. They pay a tax-free income yield to investors d. Of the stock options provided to purchase REIT common equity shares at a discount e. Only A & B 3. Investors who own Operating Partnership Units (OP units) of REITs a. Are often sellers of properties to REITs who receive a tax deferred transaction (similar to a 1031 exchange) with most rights equivalent to common shareholders b. Do not receive common stock dividends until the OP units are converted into the REITs common shares C. Must be converted into common shares within 10 years of receipt, or they expire d. Have recently been outlawed in the Dodd Frank legislation e. Provide holders with a preferred return over common shareholders 4. Defeasance a. Allows CMBS borrowers to sell properties without any prepayment penalties, unlike yield maintenance requirements b. Concept which allows REIT unsecured debt to be fully prepayable without penalties C. Allows CMBS borrowers to substitute a RE property of their choice to replace the sale of a CMBS property d. Provides no options to prepay a loan in advance of the maturity date e. Permits CMBS borrowers to submit qualified U.S. government securities to substitute for the sold Real Estate property f. None of the above 5. Same Store Sales metrics for a RE investment refers to a. The overall revenue year over year growth of a particular corporate retailer which is part of a RE investment, e.g. Walmart b. The annual RE rental growth rate year over year demonstrating operating performance changes of the existing in place leases C. The RE revenue year over year growth rate of a particular geographic region in a portfolio, e.g. east, west.. d. The overall revenue year over year growth of common REIT sectors e.g. retail, office , hospitality . e. None of the above