You have been provided the following information for REIT A. Please answer all questions below using this information, and building on each question as well. 

 

Since this information is about three months old and the construction progress has been ongoing, it's valuation is likely to have increased by about 10%. Similarly, the value of land held for development has increased by about 5%. However, the other items appropriately reflect their respective fair market valuations.

 

Net operating income from income producing properties ($MM)	250
Recurring Capital Expenditures ($MM)	22
Nominal Cap Rate	6.58%
Economic Cap Rate	6.00%
Construction in Progress ($MM)	400
Land Held for Development ($MM)	150
Furniture, Fixtures, and Equipment ($MM)	3.5
Cash and Cash Equivalents ($MM)	30
Other Assets ($MM)	22
Short-term Bank Loan (utilized line of credit)($MM)	20
Mortgage loans payable ($MM)	1,590.00
Market value of unsecured bonds ($MM)	826
Convertible Bonds ($MM)	277
Minority Interest ($MM)	0
Preffered Shares outstanding (MM)	10.1
Preffered Share Price ($)	25
Common Shares Outstanding (MM)	84.8
Common Share Price as of Today ($)	21.2

 

1. Based on the information provided above, what is the net asset value (NAV) of REIT A?
A- $1,008.3 Million
B- $1,153.1 Million
C- $1,286.9 Million
D- $1,487.5 Million

 

2. Based on question 1 above, what is the premium / discount to NAV of REIT A's share price?
A- Premium of 55.9%
B- Premium of 20.9%
C- Discount of 23.6%
D- Discount of 55.9%

3. Based on the information provided above, what is the implied cap rate for REIT A's property portfolio?
A- 6.026%
B- 5.953%
C- 5.547%
D- 4.992%