You are analysing the results of ABC REIT as at December 31, 20X0. ABC REIT has...

  

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You are analysing the results of ABC REIT as at December 31, 20X0. ABC REIT has 15,000,000 units outstanding with each unit trading at $100. You estimate the market value of its assets $2,500,000,000 and the market value of its liabilities at $1,300,000,000. ABC REIT has provided the market with the following information as at December 31, 20X0. Rental revenues Property operating expenses Dividends paid in 20X0 Depreciation Loss on sale of real estate assets General & administrative expenses Interest expense b) $205,000,000 $65,000,000 $25,000,000 $8,000,000 $5,500,000 $75,000,000 $26,500,000 What are the Funds from Operations for 20X0? What is your estimate of the NAV? What was the FFO payout ratio in 20X0? What was the G&A ratio in 20X0? Net income a) d) e) $55,000,000 Are the units trading at a discount or a premium (answer Discount or Premium)? You are analysing the results of ABC REIT as at December 31, 20X0. ABC REIT has 15,000,000 units outstanding with each unit trading at $100. You estimate the market value of its assets $2,500,000,000 and the market value of its liabilities at $1,300,000,000. ABC REIT has provided the market with the following information as at December 31, 20X0. Rental revenues Property operating expenses Dividends paid in 20X0 Depreciation Loss on sale of real estate assets General & administrative expenses Interest expense b) $205,000,000 $65,000,000 $25,000,000 $8,000,000 $5,500,000 $75,000,000 $26,500,000 What are the Funds from Operations for 20X0? What is your estimate of the NAV? What was the FFO payout ratio in 20X0? What was the G&A ratio in 20X0? Net income a) d) e) $55,000,000 Are the units trading at a discount or a premium (answer Discount or Premium)?

Answer rating: 100% (QA)

a To calculate the Funds from Operations FFO for 20X0 we need to adjust the net income by adding back noncash expenses such as depreciation and subtra... View the full answer