You are a manager of a diversified real estate portfolio that is has been expected to continue and outperform the market and deliver an exceptional NOI growth of 5%, on average, into the foreseeable future even when the market NOI growth is only expected to average 2.5%. The current market value of your portfolio based on the expectations described above is $1.3B. You have just received the most recent data from your accounting/finance department and it that during the last year your portfolio delivered the highest NOI on record - 3.5% higher than the NOI reported the previous year. 

What will be the market value of your real estate portfolio when you release these results to the market tomorrow morning?

Answer rating: 100% (QA)

Market Value NOI Market Cap Rate Assuming a constant market capitalization r... View the full answer