Robust Properties is planning to go public by creating a REIT that will offer $1$ million shares of stock. It is currently trying to develop a pro forma set of financial statements. Robust is faced with a number of questions about its handling of some accounting and financial disclosure issues.

Robust Properties

I. Major Financial Information:

a$.$ Assets$-$properties $($actual cost$)$

b$.$ Depreciable basis$-$buildings only

c$.$ Useful life

d$.$ Operating expenses$40$ yearse. Management expenses$-$third parties$38\%$ of rentsf. General and administrative expenses$5\%$ of rentsg. Mortgage a $8\%$ interest only, $10$ yearsh. Financing feesII. Lease Information:$3\%$ of rents$$30,002,000$$$900,000$a$.$ Average lease termb. Leasable spacec. Base rents $($year $1)$d$.$ Escalation factor$-$rents per yeare. Lease commissionsf. Tenant improvements$5$ years$1,000,000$ square feet$$15$ pounds per square feet $5\%4\%$ of year $1$ rent$$10$ pounds per square feet

The management of Robust Properties has asked you to prepare preliminary pro forma financials for the next three years. Specifically, you should have $(1)$ a beginning balance sheet, $(2)$ operating statements for each of the next three years, and $(3)$ all relevant financial ratios for year $1$ results only. Robust will pay all financing fees, tenant improvements, and lease commissions upon commencing operations. It would like to pay a minimum dividend of $$4\mathrm{.}00$ per share.

In preparing your pro forma operating statements, Robust wants you to consider the effects of reporting in the following two ways:

Required:

a$.$ What would EPS, FFO, and ROC be under both approaches? $($Round your intermediate calculations and final answers to $2$ decimal places.$)$